4.19.23 The Treasury Market Is Starting To Show Signs of Worry Over Debt Ceiling
With tax season (mostly) behind us, the U.S. Treasury Department will have a better sense of how much cash it has on hand and when it will run through the extraordinary measures it is currently employing to pay its bills. The Treasury is unable to issue net new debt (it can issue debt to replace maturing debt), so it is currently relying on accounting gimmicks to ensure continued payments. However, that can only work for so long. Right now, estimates for the so-called x-date, or the drop-dead date when Congress has to act, range from early summer to the fall, but the first key hurdle comes around June when there’s an additional influx o
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