Bonds are poised to open up this morning as the US government is moving into the second week of a shutdown with no end in sight. Although concerns over the budget and debt ceiling continue to weigh on sentiment, the drop in both yields and volatility in Treasuries is a sign that investor confidence in a resolution is outweighing worry over the current situation. With many of the economic releases delayed, the key event of the week will be the release of the September's FOMC minutes where the Fed surprised most everyone by not tapering.
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