President Joe Biden has reportedly urged his negotiators to keep following a debt-limit deal after House Speaker Kevin McCarthy indicated both parties may reach an agreement as soon as this weekend.
In a call early Friday from Japan, where Biden is attending the Group of Seven summit, the President told his negotiating team in Washington that he's confident Congress will act in time, reported Bloomberg citing a White House official.
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In a call that roughly lasted for 20 minutes, negotiators informed Biden they were making steady progress, the report said.
Price Action: U.S. markets ended in the green for the second straight day as investors continued to be optimistic the debt ceiling crisis will soon see a resolution.
The SPDR S&P 500 ETF Trust SPY closed 0.96% higher on Thursday while the Invesco QQQ Trust Series 1 QQQ gained 1.86%.
Meanwhile, McCarthy and Senate Majority Leader Chuck Schumer are making plans for votes in the coming days on a yet-to-be-finalized deal, the report said.
However, even if a resolution is reached, the barrage of bond sales by the Treasury Department to meet its obligations in the aftermath of a resolution is expected to drain liquidity from the banking system and push up short-term borrowing rates.
The iShares 1-3 Year Treasury Bond ETF SHY closed 0.18% lower on Thursday while the Vanguard Short-Term Treasury Index Fund ETF VGSH closed 0.19% lower, according to Benzinga Pro.
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