Treasuries rebounded on Tuesday after a two-day decline, with bond prices rising steadily throughout the morning. The yield on the ten-year note fell by 3.5 basis points to 4.127 percent. The government shutdown continues to impact the economy, with key economic data delayed indefinitely. Democrats’ demands for enhanced Obamacare tax credits are causing a struggle in passing a temporary funding bill. Despite the lack of data, the Federal Reserve is expected to cut rates by another quarter point. Fed officials’ remarks this week and the release of meeting minutes may provide clarity on the rate outlook.

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