House Democrats have established a vote on a bill that would suspend the US debt ceiling until after the 2022 congressional elections.
This is reported by Bloomberg as follows:
''The debt ceiling suspension to Dec. 16, 2022 is urgently needed because the Treasury Department has warned it could run out of accounting measures to stave off a payment default sometime in October. But Republicans have vowed to block the measure in the Senate as long as Democrats are pursuing their separate package of tax hikes and spending.
In a sign of its expected defeat in the Senate, top Appropriations Committee Republican Richard Shelby announced he would vote against the bill over the debt ceiling increase.''
Market implications
In markets, the Treasury markets especially are showing signs of concern with higher yields representing compensation for the added risk paints that picture.
The US 10-year was 1bps higher at 1.32%.
The government would be temporarily funded which would avert a shutdown after the end of this month which is bullish for risk sentiment.
Update
US House votes 217-207 to move to debate and vote on passage of temporary government funding and debt limit increase.
Majority of US house of representatives votes to advance bill to fund US government through December 3 and suspend debt limit until end of 2022.
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