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Speaker Johnson Warns of Record-Breaking U.S. Government Shutdown

Speaker of the House Mike Johnson, R-La., praises President Donald Trump's peacemaking efforts leading to a ceasefire pausing two years of war in the Gaza Strip, at the Capitol in Washington, Monday, Oct. 13, 2025.  House Speaker Mike Johnson has cautioned that the ongoing U.S. government shutdown could become the longest in the nation’s history, as the political standoff between Republicans and Democrats shows no signs of easing. Now in its 13th day, the shutdown has already shuttered federal offices, closed museums, and disrupted air travel across the country. Thousands of federal workers face layoffs, while unions have begun legal challenges against the administration’s actions. Johnson, speaking at the Capitol, said he would not negotiate with Democrats until they suspend their healthcare-related demands and agree to reopen the government. “We’re barreling toward one of the longest shutdowns in American history,” he warned. Vice President JD Vance described the cuts as “pain...
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Treasuries Extend Selloff Amid Hawkish Fed Views


The world’s largest bond market is experiencing continued turbulence as hawkish Federal Reserve (Fed) views persist. Here are the key points:

  1. Asian Stocks Under Pressure: Asian stocks are set to open lower after US shares extended their losing streak to the longest since January. Equity futures contracts in Japan, Hong Kong, and South Korea indicate early losses, while those in Australia and China gained. Investors will closely watch Asian chipmakers like Taiwan Semiconductor Manufacturing Co. and Tokyo Electron Ltd.

  2. ASML Holding NV’s Warning: Europe’s most valuable tech firm, ASML Holding NV, reported a tumble in orders during the first quarter. Its China sales are likely to be hampered by US export control measures. This news has raised concerns for semiconductor stocks.

  3. US Bond Market: Despite solid economic readings, the US bond market faces headwinds. Jerome Powell’s recent comments have dampened rate-cut expectations. However, dip buyers emerged in the Treasury market, with two-year yields dropping below 5%. A $13 billion sale of 20-year bonds also drew solid demand.

  4. Investor Sentiment: Investors remain skeptical about how much further US stocks can rally after their strong performance in the first quarter. The latest pullback occurs even as US economic data point to continued strength.

  5. Dollar and Currencies: The dollar was little changed in Asia after falling for the first time in six days. Japanese yen and Korean won have also experienced significant declines against the dollar this year.

  6. Outlook: UBS Global Wealth Management expects the yield on the 10-year US Treasury to end the year around 3.85%. The Fed’s rate cuts, though delayed, are still anticipated, leading to further bond market adjustments.

In summary, the bond market remains sensitive to Fed communications, economic data, and global events. Investors should closely monitor developments as interest rates continue to be a focal point.


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