Protection Against U.S. Default Is Getting Pricier Amid Impasse
- One-year credit-default-swap cost rises to highest since 2015
- Market starting to hedge payment delay, BI’s Jersey says
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It’s getting more expensive to protect against the possibility of a U.S. government default, with less than two weeks until Treasury Secretary Janet Yellen says the nation will hit its debt ceiling.
As the partisan impasse in Congress drags on, investor anxiety is mounting that lawmakers could fail to raise the debt limit in time. There’s a growing risk premium in Treasury bills maturing around the end of October.