Fiscal Gridlock Sends Yields Higher Amid Looming Uncertainty
The US House of Representatives has canceled its final two weeks of September votes, wiping out eight voting days before the midterm elections.
This sudden decision was made by GOP leadership, citing competing priorities as the reason. However, the House will return early if the Senate adopts a budget resolution that unlocks a party-line reconciliation bill.
The cancellation of these voting days leaves several bills waiting in limbo, including the crypto-focused CLARITY Act, which has its fate tied to a separate Senate procedural vote on September 15.
According to experts, this fiscal uncertainty can push Treasury yields higher. With major decisions now pushed toward a lame-duck session after the midterms, the deficit and Treasury supply picture remains unresolved for longer.