Debt-Ceiling Closing Date Is Looming, However Don’T Panic Yet-Commentary

If they don’t work together to pass the debt-ceiling legislation, the Treasury is expected to run out of money by as early as the beginning of October.
The odds of this happening are low, but if it does happen it could trigger panic in stocks and bonds.
Already, yields on bonds that mature after the debt ceiling deadline are higher than yields on bonds maturing before it, and that’s something to be concerned about.
If investors begin to doubt America’s ability to pay back debt, short-term bond yields would peak, like they did in 2011 and 2013.
One of the biggest reasons the United States can borrow so much money is because the country’s credit rating is so high.

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