US Treasury yields rose, influenced by expectations of interest rate cuts and high corporate bond issuance

Treasury yields rose on Monday on the back of high corporate bond issuance and a continuation of last week's bearish tone in the Treasury market, when Federal Reserve chairperson Jerome Powell poured cold water on the possibility of further monetary easing this year. Meanwhile, the US government shutdown that began on October 1 this week could become the longest on record, disrupting the release of key economic data, adding to the uncertainty facing policymakers and investors as they assess the direction of inflation and the weakness in the labour market. "I think yields are falling too fast and too hard," said Kelly Kowalski, head of investment strategy at MassMutual. " Mr. Powell last week poured cold water on expectations of a big rate cut by the Fed... More importantly than the December meeting, it has raised questions about the big rate cut that has been priced in next year and the Fed's view on it, "she said, adding:" A lot of it has to do with missing data. "