Investors Are Anxious About the Debt Ceiling. These Charts Show How Much
- Prospects for default in limbo even after tax receipts flow in
- Cost of insuring against non-payment has continued to rise
The US Capitol in Washington, DC.
Photographer: Graeme Sloan/BloombergThis article is for subscribers only.
Investors are little closer to knowing just when the US might default on its debts than a week ago and there are signs that they’re getting more worried about the risks posed by the $31.4 trillion statutory borrowing limit.
The yield premiums demanded by investors for securities that are more at-risk for non-payment have increased relative to other maturities. Meanwhile, rates on those that are most assured of avoiding the potential storm — the very shortest securities — have been pushed lower by overflowing demand from buyers.