U.S. government shutdown dampens economic activity

U.S. bond yields fell across the board on Friday, with yields for all maturities falling by at least 7 basis points, hitting their lowest level since mid-September. Yields had fallen a few basis points on signs that the U.S. government shutdown may be dampening economic activity.
"It makes sense to flee to safety immediately," said Dan Carter, portfolio investment manager at Fort Washington Investment Advisors."The previous narrative was that trade relations were slowing down, so this was surprising."
The U.S. dollar weakened while the yen, seen as a safe-haven asset, rose.
U.S. bond yields stabilized for a time, when the initial decline in the University of Michigan's consumer confidence index in October was less than economists had expected.
U.S. Treasury bonds will be closed on Monday because U.S. banks will close due to Columbus Day, but interest rate futures contracts listed by CME Group Inc. and the U.S. stock market will trade as usual.