Morgan Stanley Says Treasury Options See 10- to 29-Day Shutdown

Treasury options pricing suggests that the US government shutdown that began Oct. 1 will last at least 10 and as many as 29 days, according to interest-rate strategists at Morgan Stanley.

Options on Treasury futures “price in a risk premium for dates when important economic data are released,” Morgan Stanley strategists led by Shaun Zhou say in a report.

Those include the monthly employment report — among the weightiest US economic indicators. Because of the shutdown, jobs data for September, slated to have been published Friday at 8:30 a.m. in Washington, were not. They also include the consumer price index, ...