It looks like House Republicans are preparing to move a short-term debt ceiling increase that would provide a framework for negotiations with President Barack Obama, according to multiple reports.
National Review’s Robert Costa is reporting that the “real debate” within House GOP leadership is when — not whether — to bring a six-week debt ceiling extension to the floor.
From the AFR we also get news on why short term US bond yield have gone bananas:
Fidelity Investments has liquidated its Treasury securities maturing between now and early November in case the government defaults next week.
The move is the first big development in financial markets in response to the rumblings in Washington and is likely to lead to other money market funds dumping their US government debt.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
