Wall Street Eyes Later Debt-Cap Date Amid Robust Fiscal Flows

Wall Street is pushing back their expectations as to when the US government will exhaust its borrowing authority under the debt ceiling because of April’s robust tax and tariff collections, with forecasts now focused on the August to October period.

Strategists from Bank of America Corp. have pushed back their X-date forecast to late October from late August, though they acknowledged a “reasonable band of uncertainty” putting the deadline anywhere in that period. TD Securities strategists now expect the Treasury to run out of funds during the first week of September from a previous estimate of late August.