U.S. Government

  • 2016-06-10 17:25


    * In the week ahead, the key question remains whether lower Treasury yields and negative bund yields can still be supported by overseas buying in the week ahead. It's a fact, the market trades long, but a little less so than Friday morning. While bunds and Treasuries raced higher Friday, lightening up was reported in 5Y, 10Y and 30Y hit at midmorning. Additionally, 5/30Y and 10/30Y flatteners, the favored curve trades, steepened a bit as prudent profits. That said, what was clear, the move off the intraday and weekly highs in Treasuries was NOT on new short sets but rather flattening up of positions. This, after absurd Treasury auction demand this week and an inability to fight risk due to high correlations between the Eurozone spreads and U.S. Treasury moves.

  • 2016-06-10 12:39


    --House Grinds Away on FY 2017 Legislative Branch Bill
    --Senate Inches Forward on Defense Authorization Bill
    --Hill Panels Continue to Discuss Budget Reforms

    WASHINGTON (MNI) - There are a number of fiscal policy issues percolating in Congress, but there is little indication of sustained and tangible progress in any of the key areas.

    Republican leadership efforts to accelerate passage of fiscal year 2017 appropriations bills have had only middling success so far, as has a GOP bid to rewrite congressional budget rules.

    Progress on both these efforts was not easy to detect this week.

    The Republican leadership planned to devote most of the time from early June to mid July on the 12 spending bills that will allocate about $1 trillion in discretionary fun

  • 2016-06-10 09:07


    --US Rep Hensarling Aims to Heighten Equity Capital, Reduce Regulation

    WASHINGTON (MNI) - While unlikely to make it through Congress this year, a plan offered this week by the House Financial Services Committee chair reignited the debate on the effectiveness of post-crisis Dodd-Frank regulations and whether new rules are hampering banking activity.

    Rep. Jeb Hensarling submitted his Financial Choice Act Tuesday, but Congress is unlikely to take up the Texas Republican's proposal before the November elections and President Barack Obama would presumably oppose any legislation that weakens the banking rules he endorsed six years ago as part of the Dodd-Frank Act.

  • 2016-06-09 19:01


    * U.S. House members across the Republican political spectrum and Democrats, exhibiting rare cooperation, mustered many more than enough votes late Thursday to send the compromise Puerto Rico aid bill on to the Senate, voting for "expediency" while accepting the argument the legislation's many deficiencies are not worth risking a major humanitarian crisis. The final vote was 297 to 127, a signal achievement for the leadership of both parties, determined to obtain passage despite widespread objections among members that the measure either went too far or not far enough, and was either biased toward bondholders or leaned toward pensioners.

  • 2016-06-09 13:59


    --High Stakes in Day's House Vote

    WASHINGTON (MNI) - After a primary vote in which Puerto Rico awarded most of its Democratic delegates to Hillary Clinton, the mechanism devised by Washington to impose an oversight board controlled by Republicans appears to be about to become a reality.

    Although often described in Washington as a rescue, the prospect of a powerful board of overseers on the island appears to be viewed in Puerto Rico largely as an unwanted mainland takeover, even if it is intended to forestall or prevent an economic and humanitarian crisis.

  • 2016-06-09 11:37


    --House Minority Leader: PR Bill Imperfect But Needed
    --Rep Pelosi: 'Feel Pretty Good' About Fate of PR Bill
    --House Speaker Ryan Makes Case For PR Bill

    WASHINGTON (MNI) - U.S. House Minority Leader Nancy Pelosi said Thursday she's "hopeful" the House will pass later in the day legislation to ease the financial crisis in Puerto Rico.

    At a briefing, Pelosi said the Puerto Rico bill is imperfect, but still worthy of support.

    "I feel pretty good about its passage," she said.

    The bill would create a powerful seven-member federal oversight board that would oversee Puerto Rico's fiscal affairs and guide the island through a court supervised process of debt reduction.

  • 2016-06-09 10:03


    --House Expected To Vote On PR Bill By 6PM Thursday
    --House Speaker Ryan Reaffirms Support For Bill

    WASHINGTON (MNI) - The U.S. House is expected to vote by 6 p.m.

  • 2016-06-08 12:52


    --House Budget Chief Price Returns to Rule Rewrite Effort
    --Senate Budget Panel Hears From Two Former Chairs

    WASHINGTON (MNI) - The House and Senate Budget committees are trying to rev up their budget reform engines this week, with a House hearing and a private Senate meeting on the matter.

    These efforts are part of a broader bid to draft legislation this summer that would overhaul the congressional budget process.

    The House Budget Committee is holding a hearing Thursday at 9:30 a.m. ET on budget process reforms, focusing on entitlement spending and funding for unauthorized programs. A panel of fiscal experts will testify, including former Comptroller General David Walker and Stuart Butler, a budget expert at the Brookings Institution.

  • 2016-06-07 17:13


    * With world interest rates at low levels and in some cases moving lower, and U.S. equities deemed under-owned, global investors had no choice but to take another look at U.S. stocks Tuesday one day after Fed chief Janet Yellen seemingly backed away from a June hike. Renewed investor demand sent the S&P 500 to new 11-month highs, even though Nasdaq Composite and Dow Jones industrial Average failed to revisit the 2016 highs of 18,167.63, posted April 20 and 4,980.137, posted Monday. The S&P 500 closed up 0.13% at 2,112.13, after trading in a 2,110.18 to 2,119.22 range. In other markets, commodities were underpinned by a softer dollar and in the case of oil, by shifting views about underlying fundamentals.

  • 2016-06-07 15:27


    --Sen.McConnell Signals Discontent With Trump
    --Sen. Reid Warns GOP Not To 'Renege' On Budget Deal

    WASHINGTON (MNI) - U.S. Senate Majority Leader Mitch McConnell Tuesday scolded Donald Trump for his repeated inflammatory statements - and then Senate Minority Leader Harry Reid ripped into McConnell for not repudiating Trump more swiftly and categorically.

    In back-to-back briefings following separate Republican and Democratic party lunches, McConnell and Reid took turns rebuking Trump - McConnell with caution and apparent reluctance, Reid with alacrity.

    Speaking first, McConnell discussed the defense authorization bill now under consideration in the Senate.