UPDATE: CARNEY DENIES NYT REPORT: "THERE IS NO DEAL"
And this is what a market dominated by button pushing chimps looks like:
Just breaking news from the NYT for now. 30 Year surging as long bond vol goes insane.
And here is the original NYT article:
The Obama administration has informed Democratic Congressional leaders that President Obama
and Speaker John A. Boehner were starting to close in on a major budget
deal that would enact substantial spending cuts and seek future
revenues through a tax overhaul, Congressional officials said Thursday.
With the government staring at a potential default in less than two
weeks, the officials said the administration on Wednesday night notified
top members of Congress that a bargain with Mr. Boehner could be
imminent. The Congressional leaders, whose help Mr. Obama would need to
bring a compromise forward, were told that the new revenue tied to the
looming agreement to increase the debt limit
by Aug. 2 would be produced in 2012 through a tax code rewrite that
would lower individual and corporate rates, close loopholes, end tax
breaks and make other adjustments to produce revenue gains.
Officials knowledgeable about the conversations between the
administration and Congressional leaders said the details of the
potential package remained unknown but they presumed it would include
cuts and adjustments in most federal programs, including Medicare.
However, officials on all sides of the tense negotiations warned that no
firm deal was in hand yet, and tried to downplay the progress — if only
to stave off attempts to block it or influence its shape by hardliners
on both sides of the debate on taxes and spending.
“While we are keeping the lines of communication open, there is no
‘deal’ and no progress to report,” said Kevin Smith, a spokesman for Mr.
And so on.