Bond bulls see opportunity as US government shutdown deadline nears

Washington

WITH days to spare before Congress has to reach a deal to keep the US government running, bond traders see a potential showdown breathing new life into the Treasury market's rally.

Assuming France's presidential election doesn't roil markets, the April 28 deadline for Congress to at least pass a stopgap spending measure and avert a government shutdown looks set to take centre stage this week, with the calendar mostly devoid of major economic data or Federal Reserve speakers.

The negotiations in Washington will kick in as investors have lost confidence in the prospect of the administration and lawmakers hammering out fiscal stimulus any time soon, although President Donald Trump intends to release a tax plan this week. Republi…