Markets aren’t reflecting a lot of worry about the debt ceiling right now, but that doesn’t mean the problem has gone away. On Monday, the New York Times reported that even though many investors expect bondholders to get priority on Treasury bond payments if the federal government gets close to running out of money, there is no such plan in place.
Markets likely will react more to the threat of a U.S. debt default as the Treasury exhausts the accounting maneuvers it is using now to keep making payment on its debt. Treasury…
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