Shutdown Shrug — Markets Aren’t Missing the Government
The political theater opens with a premium for private-sector jobs data.
This show is fully priced in.
Photographer: Samuel Corum/Sipa/Bloomberg
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Government shutdowns seldom occur without warning. It’s literally obvious from miles away, allowing investors to fully price in its occurrence. This helps explain why they have limited impact on financial markets, but Wednesday’s sharp dip in Treasury yields underscored why a funding lapse cannot be discounted.