US banks were stocking cash machines with extra funds, investors dumping Treasury bills and US equity indices sinking on Thursday in a sign of mounting unease that Washington risks defaulting on its debt later this month. On the third day of a government shutdown, policy makers and business leaders expressed increasing concern that Republicans and Democrats would not reach a deal before the October 17 deadline to raise the debt ceiling. Money market funds are big holders of Treasury bills, and these short-term securities are viewed as a substitute for holding cash as they are backed by the full credit of the US government. As the debt ceiling deadline looms in the absence of an accord in Washington, money funds are looking to lighten up on their holdings of October-dated bills, said traders.
Source: http://www.ft.com/cms/s/0/11d59fa8-2c38-11e3-acf4-00144feab7de.html?ftcamp=published_links%252Frss%252Fworld_us_economy%252Ffeed%252F%252Fproduct
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