Expect heavy debate/fight in Capitol Hill as debt ceiling likely to get hit by November 5th

Last night US treasury secretary jack Lew sent a letter to congress saying that government might face shut down as treasury will exhaust extraordinary measures it has used to avoid a breach to country's debt ceiling on November 5th unless it is extended by Congress. Treasury had made the estimate after reviewing third quarter's company and individual tax receipts.

This debt ceiling has become a drama in US, which according to businesses and analysts undermine confidence. It might lead to wild gyrations in the treasury markets as ultra-short term rate might shoot up if solution remains eluded as we move in towards November.

In 2011, this debt ceiling wasn't lifted till the last moment, which led to heavy sell offs in the market around the world. Though world has grown more used to US debt drama, nevertheless according to many analysts it can still deliver chilling blow, especially in debt market.

On Wednesday, lawmakers in Senate has passed a bill to keep government from shutting down at least till December 11th by 78-20 majority but any long term agreement over spending has now been eluding policymakers for years.