The global bond market is watching the turmoil in the US Congress very closely. With Republicans in the House of Representatives unable to choose a leader, more and more bond market investors are concluding that US politics-as-usual is incapable of defusing America’s ticking debt bomb. Only a major bond market crisis will shock the US polity into making the tough decisions needed to right America’s fiscal ship.
The toppling of House speaker Kevin McCarthy, centre left, on October 3 has triggered the latest bout of instability in Washington. Bloomberg