Treasury Yields Rise Over Debt And Deficit Concerns, Yellen Says X-Date Is October 18

Treasury Secretary Yellen Debt Ceiling

Default Daye is Oct 18

The X-Date is the date the US treasury would default on payments. 

After hearing estimates from October 1 to November 14, Yellen Set the Date at October 18.

“At that point, we expect Treasury would be left with very limited resources that would be depleted quickly. It is uncertain whether we could continue to meet all the nation’s commitments after that date,” she said in a letter to congressional leaders on Tuesday morning.

Senate Majority Leader Chuck Schumer (D., N.Y.) said he would attempt later Tuesday to pass an increase to the debt limit with just a majority vote, allowing Democrats to raise it on their own if no Republicans object. But at least one Republican senator has already said that he would object, potentially blocking the Senate from using the tactic.

Pointless Maneuvering

Earlier Senate Republicans blocked a measure that would have extended the debt ceiling to December of 2022. 

I understand blocking a move that extends beyond the midterm elections. But I fail to understand the point of blocking a shorter-term move. 

Wasn't the whole point of Republicans to get the Democrats to unilaterally increase the ceiling?

In the House, look for Pelosi to find some language that Republicans can accept by the end of the week

I expect it will be a stop-gap measure to December of 2021, not 2022. If so look for another pointless battle later this year.

It's pointless because everyone knows the ceiling will lift.

The whole charade seems unusual. Congress votes for spending. It should immediately be assumed that the debt ceiling rises with it.

If not, why can't Congress think ahead in the first place?

All Congress has to do when it passes any measure is attach a debt ceiling amendment to to bill. 

Is it that difficult to see ahead if they don't?

Treasury Yields Rise

Meanwhile US treasury yields are on the rise.

  • 30-Year: 2.06%
  • 10-Year: 1.52%
  • 5-Year: 1.01%
  • 2-Year: 0.31%
  • 1-Year: 0.08%
  • 3-Month: 0.03%
1 2
View single page >> |

Like these reports? If so, please  more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.