US: Monthly budget statement in focus – Nomura

Analysts at Nomura suggest that the US monthly budget statement from Treasury has received increased attention recently due to the upcoming deadline for raising the debt ceiling and will be a key event for today’s session.

Key Quotes

“In June, the US government posted a monthly budget deficit of $90bn. Earlier this year, in its monthly budget review, the Congressional Budget Office noted that revenues were coming in below expectations. That concern seems to have eased recently, but upcoming budget reports will be worth closely monitoring. Treasury Secretary Mnuchin recently sent a letter to Congress on 28 July urging to increase the debt limit by 29 September. Once Congress returns from the August recess, there will be 12 legislative days to address the debt ceiling before the end of September.”