Bond Traders Brace for March Madness as U.S. Debt Cap Returns
- First day of next month marks end of ceiling suspension
- Focus also on China-U.S. trade and Fed chairman’s testimony
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Treasury traders are bracing for their own outbreak of March madness, with a plethora of risks on the radar, including the coming reinstatement of the U.S. debt ceiling.
March 1 marks the final day of the borrowing cap’s suspension, and the limit’s return will start the countdown until America runs out of so-called extraordinary measures to keep the government funded. Friday is also the official deadline for an increase in U.S. tariffs on goods from China, although progress in negotiations indicates that could well be delayed.