• US interest rates would skyrocket
  • Postponing debt ceiling increase to last moment is a self inflicting wound harming families and businesses
  • Consequences of default could last a generation
  • Prioritisation of obligations in a default would be unworkable and US treasury is completely opposed to such a move

Looks like a senior treasury official padding out the headlines we saw earlier.

Dollar is now on the slide further as USD/JPY looks to move lower, tracing a new low at 97334, while USD/CHF fell briefly through 0.9000 once again. It’s bounced back to 0.9010 for now.