US: Senate Vote On White House Recissions Package Expected On Tuesday

Jul-10 14:37

Senate Majority Leader John Thune (R-SD) has told reporters that the first Senate vote on the USD$9.4 billion White House rescissions package will "likely be Tuesday", per Jodain Carney at Politico.

  • The rescission package would unwind Congressionally authorised funding for the State Department's foreign aid budget and publicly funded broadcasters. If it passes, is likely to the first of several packages spearheaded by White House Office and Management and Budget Director Russ Vought.
  • Likely anticpating a precedent (explained here) that could further degrade Congress's authority over spending, Senate Minority Leader Chuck Schumer (D-NY) has indicated he could use Democratic leverage over the FY26 government funding process to stall President Donald Trump's rescissions agenda.
  • Schumer said yesterday: “If Republicans cave to Donald Trump and gut these investments agreed to by both parties, that would be an affront to the bipartisan appropriations process. It is absurd to expect Democrats to play along with funding the government if Republicans are just going to renege on a bipartisan agreement by concocting rescissions packages behind closed doors that can pass with only their vote..."
  • Schumer’s combative tone comes after he was heavily criticised by some Democrats for supporting a short-term funding measure in March that offered few concessions to Democrats.
  • Polymarket has registered a notable spike in the implied probability of a government shutdown in response to Schumer’s comments. Bettors now see a roughly 40% chance of a shutdown in 2025, up from 28% earlier in the week. 

Historical bullets

GILT AUCTION PREVIEW: On offer next week

Jun-10 14:31

The DMO has announced it will be looking to sell GBP4.5bln of the 4.375% Mar-30 Gilt (ISIN: GB00BSQNRD01) at its auction next Tuesday, June 17.

MNI EXCLUSIVE: Debt management head at Swedish DMO, speaks to MNI

Jun-10 14:20

Klas Granlund, debt management head at Riksgladen, the Swedish DMO, speaks to MNI about benchmarks and turbulence.- On MNI Policy MainWire now, for more details please contact sales@marketnews.com

FOREX: Dollar Dip Steers Market Clear of Test of Key Resistance

Jun-10 14:17
  • USD Index heads into the London close at the lowest levels of the day: the index has shown through the overnight low of 98.8959, but remains clear of the weekly low and last week's pullback low of 98.3510.
  • Today's price action keeps prices clear of a material test on key resistance stemming from the downtrendline drawn off the early February highs at 109.881 (today at 99.575) - a level that could draw additional interest on any hawkish repricing stemming from strong inflation prints at this week's CPI & PPI releases.
  • Despite a busier European morning, FX futures volumes have faded fast into the NY crossover - extending the theme after a quieter market on Monday. Poor UK jobs data has helped GBP standout: futures have cleared volumes 30% ahead of average for this time of day, but both JPY and EUR markets are considerably quieter than usual.
  • The upcoming 3y Treasury auction takes focus next, but the longer-end issuance on Thursday should prove of greater interest as the long-end of the curve across developed markets remains particularly sensitive and helps drive broader sentiment.