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Debt Ceiling Concerns Start to Surface in Treasury Bills

Bloomberg business news

Bond Traders Worry Trump May Use Obama's Secret Debt Plan

When it comes to the debt ceiling, short-term investors aren’t waiting for Treasury Secretary Steven Mnuchin to inform Congress of the exact date the U.S. will run out of cash. Traders are already willing to pay more for bills maturing after Oct. 19 to avoid being caught holding securities vulnerable to a technical default -- in line with Congressional Budget Office forecasts that predict the federal government will hit the debt ceiling around early- to mid-October. Because of the anxiety surrounding the debt limit, bills maturing Oct. 19 are yielding 1.08 percent, versus 1.07 percent for securities due Oct. 26.