1995-1996 Govt Shutdown Impact on Interest Rates

Interestingly enough, interest rates declined during the 1995-1996 government shutdown. And, coincidentally or not, interest rates are declining now.

1995-96 Government Shutdown
SUMMARY:

From November 14 through November 19, 1995 and from December 16, 1995 to January 6, 1996 the U.S. government was shut down as a result of a budgetary impasse between Congress and the White House. The shutdown was precipitated by a dispute between Democratic President Bill Clinton and Republican Speaker of the House Newt Gingrich over domestic spending cuts in the fiscal year 1996 budget and resulted in a bipartisan agreement to balance the budget in seven years' time.

http://bancroft.berkeley.edu/ROHO/projects/debt/governmentshutdown.html

1995-1996: 10 Yr Treasury Note Rate
Crisis Began November 14, 1995: 5.97%
Crisis End January 6, 1996: 5.69%