In Asian trade, longer-dated U.S. Treasuries rallied on Tuesday as bond traders welcomed the deal to suspend Washington's borrowing limit."The U.S had a poor resolution to the debt ceiling negotiations with still a huge increase in government debt and no real cuts to spending but has relieved pressure for now," said James Rosenberg, an advisor at broker Ord Minnett in Sydney.
Narrow margins in the House of Representatives and Senate mean moderates from both sides will have to support the bill for it to pass. While U.S cash markets were closed on Monday, S&P 500 e-minis were up 0.32%, reflecting the positive reaction to the debt deal. "As liquidity gets drained from the banking system with bill issuance, what impact could that have on broader markets? Some estimates suggest it could be the equivalent of one 25 basis points rate hike as far as financial conditions are concerned," the investment firm's analysts wrote in a note on Tuesday.
Malaysia Malaysia Latest News, Malaysia Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Investingcom - 🏆 450. / 53 Read more »