Senate Republican leader Mitch McConnell will vote against increasing the debt limit unless President Obama agrees to spending cuts and long term reforms that satisfy the bond market, as well as foreign investors, and “astonish the American people.”

McConnell’s hard line position is a blow to the president’s fading hopes of winning a debt limit increase without making serious concessions. And it’s a signal to Republicans on Capitol Hill that the debt limit vote is their best chance to win deep spending cuts and significant entitlement reforms.