US debt ceiling back in focus - Nomura

Analysts at Nomura explained that US Congress will attempt to pass a budget to fund the federal government after 28 April. 

Key Quotes:

"We expect Congress to pass a spending bill that funds the government through the end of the fiscal year (30 September) with only minor tweaks to government spending. 

However, there is a possibility that Congress may not be able reach an agreement because of disagreements between Democrats and Republicans over spending and policy priorities. In this case, Congress may instead pass a shorter-term spending bill (1 week, for instance) to buy more time to work out an agreement.

The least likely outcome is that no spending bill passes and the government shuts down— Republican leaders in the House and Senate recognize the risk that any shutdown would be blamed primarily on the party in control. 

Moreover, our analysis based on a study by Congressional Research Service shows that Congress has passed 161 continuing resolutions (CR) to prevent funding gaps since 1982."