CHART OF THE DAY: Here's What Bonds Did The Last Time The Government Shut Down

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Republicans and Democrats have yet to come to deal on the budget, and now a government shutdown may hit this weekend.

The last time the government shut down however, bond markets didn’t really care all that much, according to Societe Generale’s Rudy Narvas.

There were a few exceptions, but overall, the market ignored the crisis, and focused on the Fed.

From Rudy Narvas:

In the first three months of the stand-off, markets felt that the dispute would resolve itself out and there were some reports of Treasuries rallying during the December shutdown on speculation of a compromise. In the second half, optimism may have faded, but there was still very little reaction to debt crisis news, such as a downgrade warning issued by Moody’s. Today, markets may be more distracted by other events such as Fed policy and the current dislocation in repo markets caused by the Dodd- Frank legislation.

Don’t miss: 11 horrible things that will happen if the government shuts down >

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