USD/JPY and Treasury yields climb higher as US government shutdown avoided

USD/JPY has extended its gains today to 50 pips and hit 148.31. That's erased yesterday's loss and it comes on improving risk appetite.

The main catalyst is Democratic Senate leader Chuck Schumer signalling that he will support the Republican bill to keep the US government open through September.

Also helping were positive indications from Canadian officials after meeting with Howard Lutnick and other US officials. There was hardly anything tangible there but another meeting is planned for next week and the Canadians were upbeat so take that as a good sign.

S&P 500 futures are up 33 points after a 78 point decline in regular trading.