Treasuries Drop as Obama Threatens to Veto Boehner’s Debt Plan
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Treasuries fell, eroding a gain from yesterday, as President Barack Obama threatened to veto House Speaker John Boehner’s plan to raise the U.S. debt ceiling and reduce spending by $3 trillion.
The U.S. may have its top-level credit rating cut as politicians struggle to reach an agreement on how to increase the federal borrowing limit, a step needed to keep paying its debts, according to BlackRock Inc. and Loomis Sayles & Co. The Treasury is scheduled to sell $35 billion of five-year debt today, the second of three note auctions this week.