Priya Misra, head of global rates strategy at TD Securities, points out that the US government remained shut down for the fifth day yesterday and with the Senate to be in session today, they don’t think that Congress is close to a deal yet.
Key Quotes
“The new session of Congress begins on January 3, and we expect a deal to be reached thereafter, though a Trump veto threat without the wall is a real possibility. We could see the shutdown lasting into mid-January.”
“During a shutdown, some economic data releases are delayed. Based on the experience of the 2013 shutdown, the December payroll report will not be released on Jan 4th if the government shutdown persists after this week.”
“Historically, shutdowns have not had much of an economic or market impact.”
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