US debt ceiling compromise on the horizon – Danske Bank

Analysts at Danske Bank offer a sneak peek at what to expect from Thursday’s Senate vote on the US debt ceiling extension.

Key quotes

“Republicans and Democrats in Congress opened the door to a temporary solution to the debt ceiling issue, saying they would consider a stop-gap measure extending the borrowing limit until December. “

“A Senate vote might follow today. While the deal merely postpones the default risk until the year-end, it at least removes another downside risk to market sentiment in the near-term. US treasury yields retreated somewhat from their highs.”