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Buy US treasuries on debt deadline extention
The official US debt ceiling deadline may be just around the corner, but congress could agree to a short-term extention until 22 November. Saxo Bank's Nick Beecroft explains this could be a "very good chance" to buy US treasuries.
This is because a short-term extention "will see a short-term rally in equities, which will see a rally in sell-off in US treasuries".
But US President Barack Obama has said he would like to see a much longer term extension, ideally until after the congressional election in November 2014.
Nick says that this scenario would be a “much better for the health of the US economy”, as "arising yields could be more sustained towards 3 percent".
But overall, Nick is only expecting a 10 percent chance of an actual debt ceiling crisis.
01:59 minutes
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