US Senate votes 50-48 to increase debt limit, over to the House for final passage

On early Friday, the debt limit increase bill got enough votes in the US senate to clear the first procedural hurdle.

The Senate voted 61-38 to advance debt limit increase legislation.

Later on, the Senate voted 50-48 to increase the debt limit; sending it to the House of Representatives for final passage.

With the approval of the legislation, the US government can temporarily raise the $28.4 trillion debt limit and avoid the risk of a historic default later this month. But the aversion of a likely default is only temporary until the December 3 deadline.

After the vote, Senate Majority Leader Chuck Schumer said "Republicans played a dangerous and risky partisan game and I am glad that their brinksmanship did not work.”

It’s worth noting that the US House is set to vote on the debt bill on October 12.

Market reaction

The successful Senate vote on the US debt ceiling limit has little to no impact on the US dollar, as it trades almost unchanged against its main competitors.

Meanwhile, the risk sentiment remains lifted, with the S&P 500 futures adding 0.15% on a daily basis while the 10-year US Treasury yields testing 1.59%, up 1.13% so far.