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- U.S. Treasury Yields have fallen as investors wait for a crucial debt ceiling vote to be held in the House of Representatives later in the day.
- House Rules Committee voted in favor of the debt ceiling vote on Tuesday with a 7-6 majority.
- April’s JOLTs job opening report is due today.
U.S. Treasury Yield recedes as investors await debt ceiling vote
U.S. Treasury yields declined on May 31, 2023, as investors fretted over the ongoing debt ceiling crisis. The House of Representatives is set to vote for a bill that could see the U.S. evade defaulting on its debt, which could have adverse effects and be the first one in its history. Additionally, Investors are also awaiting the April report on key jobs data.
The U.S. markets are reacting to the Fiscal Responsibility ACT that seeks to raise the debt ceiling to avoid the government defaulting on its debt which could happen as soon as June 5.
The bill received a win in the House Rules Committee with a 7-6 vote and is now headed to the House of Representatives floor today for tentative voting. If the bill is passed, it would need approval from the Senate before it is effected.
However, a straight win is not guaranteed as politicians on both sides of the aisle have criticized Speaker Kevin McCarthy and President Biden’s compromise. At least 20 Republican lawmakers have asserted that they would vote against the bill. The market is under stress and tensions regarding what might happen.
Meanwhile, a key report on April JOLTs job openings is due today, which will give key hints about the state of the economy and massively affect the decision of the Federal Reserve regarding the next interest rates policy decision.
Whether the bill will pass or not and if the Federal Reserve will hike or pause interest rates again is yet to be seen. Keep watching Fintech Express for updates on this and other stories.