The yield on the benchmark US Treasury 10-year is popping higher, aided by news overnight that the US Senate voted to extend the debt ceiling until December, pushing back market fears of a government default. The Senate agreed by a vote of 50-48 to increase the debt limit by $480 billion to enable the government to pay its bills until early December.
With fears of a US government default now pushed down the road, all eyes will be focused on this month’s US Jobs Report (NFP) released at 13:30 BST today. This month’s report will be watched more keenly than usual as a print in line with expectations, or even mildly below, is likely to trigger the Fed to start tapering its $120 billion a month bond-buying program, a program that has left the central bank holding in excess of USD 8 trillion of assets.
