Risk assets have caught a bid following a report from Talking Point Memo, according to which some 10 minutes before the Senate vote is due to begin about extending short term funding, Senate Democrats are set to accepting a deal to end the government shutdown in exchange for the promise of a vote on the DREAM Act in the coming weeks.
Subsequent headlines from Reuters appears to validate that we may be on the verge of a deal:
- REPUBLICAN SENATOR FLAKE SAYS HE THINKS SENATE HAS ENOUGH VOTES TO MOVE FORWARD ON STOPGAP GOVERNMENT
- DEMOCRATIC SEN. MANCHIN PREDICTS SHUTDOWN COULD RESOLVE TODAY
- MANCHIN: TALKS `VERY POSITIVE,’ GOVT COULD REOPEN LATER TODAY
As a reminder, DACA remains the most contentious issue preventing Democrats from voting to end the shutdown. According to TPM, three sources have said that the details of the deal aren’t yet clear but that a deal is “all but certain late Monday morning’.
“There’s a deal and the vote will likely have room to spare above 60,” one source told TPM.
Looking at markets, there has been a modest knee jerk reaction higher in USD here, with yields ticking up higher also in response and USDJPY rising above 111.00 in what appears to be a relief rally.
via RSS http://ift.tt/2n1la3k Tyler Durden