The US Federal Government posted a deficit of $170.6 billion in August, as relief programs created at the height of the pandemic started to unwind. Despite narrowing deficits, concerns remain as Washington inches closer to the October deadline to take action on the debt ceiling. On a year-over-year basis, the deficit narrowed by 14.7%. The significant spending on the part of the government reflects ongoing support to households during a time of severe economic stress. The US Dollar traded lower following the opening bell in New York after strong gains in the overnight session. The Greenback weakness mirrored the decline in the 10-year Treasury yield, as risk assets largely declined while bonds advanced.
