–Senate Majority Leader’s Decision To Delay Suggests Bid For Debt Deal –Senate Adjourns Saturday After Day of Conflicting Signals –House Votes To Kill Sen. Reid’s Debt Bill –Hill GOP Suggests Deal Is Near, Sen. Reid Disputed Positive Assessment By John Shaw WASHINGTON (MNI) – A confusing, volatile day on Capitol Hill took yet another turn [...]

–Congressional Republican Leaders Signal Debt-Hike Breakthrough Near –House Speaker Boehner: ‘Confident’ Debt Ceiling Impasse Will End Soon –Rep. Boehner: GOP In Direct, Intense Talks With Obama on Debt Hike –Sen. McConnell: White House Now ‘Fully Engaged’ On Debt Hike Deal –President Obama Meeting With Sen. Reid, Rep. Pelosi By John Shaw WASHINGTON (MNI) – In [...]

–In Mostly Party Line Vote, House Rejects Senate Democratic Bill –House Majority Leader: House Will Return To Legislative Session Monday –Senate Republicans Pledge To Block Reid Bill In Senate –Washington Waits For Reid and McConnell To Begin Negotiations By John Shaw WASHINGTON (MNI) – In a vote orchestrated for both retaliation and symbolism, the House [...]

The Canadian dollar fell sharply against all of its major counterparts today, following the unexpected negative GDP report.(...)
Read the rest of Loonie Declines as Economy Contracts (134 words)

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–Senate Votes To Reject Boehner’s Debt Plan, 59 to 41 –Senate GOP, In Dig To Reid, Threatens Filibuster of His Plan –Senate Leaders Reid, McConnell Exchange Verbal Shots –Sen. Reid: McConnell Rejected Two Offers Friday To Begin Talks By John Shaw WASHINGTON (MNI) – Just moments after House Speaker John Boehner’s carefully crafted debt limit [...]

WASHINGTON (MNI) – The Congressional Budget Office late Friday said a revised Senate debt-hike plan would save $2.2 trillion to $2.4 trillion over 10 years and includes a multistep process for raising the debt ceiling in the future: Analysis of the Impact on the Deficit of the Budget Control Act of 2011 as Revised in [...]

Now the House and Senate will try and negotiate a bill that can pass both houses. Details here.

Medium-term,the quality of deficit reduction plans key. Neither House or Senate plans are sufficient, Moody’s Steven Hess said.

WASHINGTON (MNI) – Following House passage of Speaker Boehner’s debt-hike bill Friday evening, the White House issued the following: The bill passed today in the House with exclusively Republican votes would have us face another debt ceiling crisis in just a few months by demanding the Constitution be amended or America defaults. This bill has [...]

–House Passes Speaker Boehner’s Debt Hike Bill, 218 to 210 –Senate Set To Table Boehner’s Plan As Early As Friday Night –Tough Talks To Extend Through Weekend On Debt-Hike Compromise By John Shaw WASHINGTON (MNI) – After a week of revisions and fierce lobbying by the House Republican leadership, the House approved late Friday a [...]

–House Speaker Toughens Debt Hike Bill To Assure House Passage –House Republicans Add Balanced Budget Amendment To Debt Hike Package –Revised Boehner Bill Eases House Passage, Ensures Senate Rejection –Senate Majority Leader Reid Prepares To Kill Boehner Bill Friday Night By John Shaw WASHINGTON (MNI) – The House is moving toward passage Friday evening of [...]

US GDP rises 1.3% in Q2 on annual rate; Q1 revised down to only 0.4% from previous 1.8% Canadian GDP falls 0.3% in May Chicago PMI falls to 58.8 in July from 61.1 in June University of Michigan consumer sentiment index final 63.7 in July from 71.5 in June House set for vote on revised [...]

By Yali N’Diaye WASHINGTON (MNI) – Atlanta Federal Reserve President Dennis Lockhart said Friday that steps towards monetary policy normalization are more likely than “additional steps in the direction of easing,” as he expects growth to strengthen in the second half of the year and into 2012, with inflation indicators converging towards 2%. And should [...]

–US Econ Likely To Improve In 2nd Half Of This Year, Into 2012 –FOMC Must Watch Situation Closely, Remove Accommodation At Approp Pace By Brai Odion-Esene WASHINGTON (MNI) – St. Louis Federal Reserve President James Bullard Friday described the current highly accommodative stance of monetary policy as appropriate given present conditions in the economy, but [...]

Fed balance sheet can generate significant inflation if accommodation not removed at the right time Since inflation has risen, real rates have decline making policy stance even easier Sees fundamental US economic growth rate at 1.75%

By Sheila Mullan NEW YORK (MNI) – In an unusual meeting brought about by the looming Tuesday deadline for giving the Treasury Department room to resume borrowing, executives from the nation’s top banks and broker-dealers Friday told Treasury of their heightened concerns about what happens under the worst scenarios. William O’Donnell, Managing Director and head [...]

US DATA: July farm prices +1.1%.

Ka-ching! That will probably do it for today as traders take advantage of a thin, month-end summer Friday to harvest another barrier. If we end below 77.00, look for a run at 76.25 and toward 75.00 next week. 76.95 was the low.

In the middle of the euro rally this morning, CNBC’s Rick Santelli was talking about big flows out of Europe into the US… As Treasuries flirt with a 2.80% yield and the euro slips (now at 1.4365), that report is looking better and better.

77.01 was the low at mid-morning Rebounds have been limited to the 77.30 area. A break of 77.00 opens the way to a retest of the spike low at 76.25 which prompted intervention from the G7 back in March.

US needs convincing plan to reduce debt/deficit Sees Canadian GDP rebounding in second half Canadian GDP contracted 0.3% m.m in May, a big drop.

WASHINGTON (MNI) – The following is a roundup of key developments and events Friday on the ongoing stand-off over the U.S. debt ceiling: * In a statement Friday, the Congressional Budget Office said excluding the effects of the caps on funding for operations in Afghanistan and Iraq and similar activities from Senate Majority Leader Harry [...]

WASHINGTON (MNI) – The following is the text of a statement by the Congressional Budget Office Friday: CBO has been asked to compare the estimated cumulative budgetary savings for Speaker Boehner’s July 27, 2011, version of the Budget Control Act of 2011, to the savings that would be attributable to Majority Leader Reid’s July 25, [...]

The Treasury was set to announce a refunding on Thursday of next week. They may instead just sell cash management bill to rollover maturing debt until the debt ceiling is sorted out, Reuters reports. 10-year yields are within 1 bp of their lowest levels since January.