Investors relieved after US House votes to suspend debt ceiling; focus turns to Senate

May 31 (Reuters) - Investors gave a muted welcome to the U.S. House of Representatives passing a bill that would suspend the government's borrowing limit and avert default, with market focus now turning to the Senate and the interest rate outlook.

Asian markets were trading higher when the bill cleared the house and held their gains. Investors nudged S&P 500 futures from slightly negative back to flat. Treasury yields rose marginally.

The Republican-controlled House voted 314-117 to send the legislation to the Senate, which must enact the measure and get it to President Joe Biden's desk before a Monday deadline, when the federal government is expected to run out of money.

"This has gone through with a very big majority, so there's enough bipartisan support that it's very hard to believe this isn't going to be even more of a formality in the Senate," said National Australia Bank head of currency strategy, Ray Attrill.

"What it does is turns the attention to the incoming data and the Fed meeting this month. It obviously remove...
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