FMHI - Treasury to suspend state bond issuance amid clash over debt ceiling
Gear up for the next big spectacle in Washington as the debt ceiling comes back into force this weekend following a two-year suspension. The deadline will curb the Treasury's capacity to issue new debt unless lawmakers can reach an agreement, which seems far-fetched at the moment due to the Republican position. GOP leadership contends that Democrats are in a spending free for all and will only support raising the debt ceiling if they promise major spending reforms and cutbacks. Analyst commentary: "It is a very slow moving train wreck," outlined Gennadiy Goldberg, rates strategist at TD Securities. "The longer they delay raising the debt ceiling, the more Treasury has to [reduce] bill supply leaving less debt to invest in, particularly on a short-term basis. What you are going to see is more and more pressure on money market rates, which in turn will put pressure on money market funds." It's
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Treasury to suspend state bond issuance amid clash over debt ceiling