Boston Fed chief Eric Rosengren becomes the first FOMC member to officially throw cold water on the idea of an October taper, telling an audience the government shutdown nearly takes any such move off the table.
For one - there the chance the Fed gets little fresh data to study (Friday's payroll report is in jeopardy). Second, the shutdown is likely to impose at least some collateral damage on the economy.
A member of the FOMC's dovish camp, Rosengren "strongly and unequivocally" supported the non-taper last month, and expects accommodative monetary policy for years to come.
Threatening the drop below 2.60% earlier in the day, the 10-year Treasury yield is now off just two basis points at 2.62%. TLT flat.