• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Debt ceiling jitters lift US credit default swaps to highest since 2011

2 years ago
in Business, Features, highlights, Home, home-news, latest News, Markets
3 min read
0 0
0
A photo illustration show the US Dollars in Buenos Aires, Argentina, on October 16, 2019. (Photo illustration by Carol Smiljan/NurPhoto)

A photo illustration show the US Dollars in Buenos Aires, Argentina, on October 16, 2019. (Photo illustration by Carol Smiljan/NurPhoto)

71
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Debt ceiling jitters lift US credit default swaps to highest since 2011

Market jitters over the U.S. debt ceiling lifted the cost of insuring exposure to its debt to the highest level in over a decade on Thursday, while JPMorgan warned of a “non-trivial risk” of a technical default on U.S. Treasuries.

A showdown over U.S. government efforts to raise the $31.4 trillion debt ceiling for the world’s largest economy has sent jitters through global financial markets. Some U.S. Treasury bill yields have hit fresh highs on fears that the deadline to raise the borrowing limit may come sooner than expected.

Spreads on U.S. five-year credit default swaps – market-based gauges of the risk of a default – widened to 50 basis points, data from S&P Global Market Intelligence showed , more than double the level in January.

The cost of insuring U.S. debt against default for one year stood at over 100 basis points as of Wednesday, according to Refinitiv data. This is well above 2011 levels, when a standoff over the debt ceiling triggered the first credit downgrade of the U.S. government.

Meanwhile, yields on U.S. T-bills, the most sensitive to the debt ceiling debate, again pushed higher, with three-month T-bill yields hitting a new 22-year peak of 5.318% .

JPMorgan said in a note published late Wednesday it expected the debt ceiling to become an issue as early as May, and that the debate over both the ceiling and the federal funding bill would run “dangerously close” to final deadlines.

RelatedPosts

Premier League: Ngumoha’s Late Goal Seals Liverpool’s Thrilling Win Over Newcastle

US Open: Venus Williams and Keys Bow Out as Alcaraz Launches Campaign

GSE Opens Week Higher as CPC Posts First Gain of 2025

The bank’s U.S. rates strategy team expects the Treasury could run out of available resources by mid-August.

“Signs of stress typically start in the T-bill market 2-3 months before the X-date given money market funds (MMF), which are large holders of T-bills, will begin to more actively advertise that they don’t hold any bills that mature over those dates,” JPMorgan said.

TAX FLOWS

Investors are closely watching the Treasury’s 2022 tax filing season receipts to determine revenues. Tax collections brought total deposits into the Treasury General Account at the Federal Reserve to $283.53 billion on Tuesday, with a closing balance of $252.55 billion after withdrawals.

“Today is another big day to watch as it will capture a portion of Tuesday’s deadline day tax flows, yet to be reported,” Deutsche Bank said in a note on Thursday, adding that the overall total was softer than some initial assumptions.

Weaker-than-expected tax collections earlier in April indicated that the government could exhaust its ability to pay all of its obligations – the so-called “X-date” – sooner than previous August forecasts, unless the federal debt ceiling is raised, some analysts have said.

Recurring legislative standoffs over debt limits in the last decade have largely been resolved before they could ripple out into markets, but some investors worry the Republican party’s narrow majority in Congress could make it harder to reach a compromise this time.

Republican U.S. House Speaker Kevin McCarthy on Wednesday unveiled a plan to raise the borrowing limit by $1.5 trillion and cut federal spending by three times that amount.

President Joe Biden has said that Congress should raise the $31.4 trillion debt limit without conditions, as it did three times under his Republican predecessor, Donald Trump.

“The serious beginning of the discussion to avoid a technical default is encouraging news,” BMO Capital Markets Strategists said in a note.

“Our baseline cynicism leaves us skeptical of any agreement being struck before the 11th hour.”

Source: reuters
Via: norvanreports
Tags: debt ceilingDebt ceiling jitters lift US credit default swaps to highest since 2011US credit default swaps
No Result
View All Result

Highlights

Asante Gold Announces Completion of $500m Financing Package to Boost Bibiani and Chirano Growth Plans

Gov’t Pledges to Intensify Reforms in Gold Sector Ahead of Crucial Anti-Money Laundering Assessment

Otto Addo Expected to Announce Squad for Crucial 2026 World Cup Qualifiers

How Artificial Intelligence Is Both Driving and Derailing Decarbonization

Ghana Revenue Authority Targets Retrieval of GHS 163m in Unpaid Taxes and VAT Arrears

Nurturing Dreams: Ghana’s Football Future Blossoms with Talent Identification Initiative

Trending

Features

Premier League: Ngumoha’s Late Goal Seals Liverpool’s Thrilling Win Over Newcastle

August 26, 2025

Premier League: Ngumoha’s Late Goal Seals Liverpool's Thrilling Win Over Newcastle Liverpool triumphed 3-2 over Newcastle United...

US Open: Venus Williams and Keys Bow Out as Alcaraz Launches Campaign

August 26, 2025

GSE Opens Week Higher as CPC Posts First Gain of 2025

August 26, 2025

Asante Gold Announces Completion of $500m Financing Package to Boost Bibiani and Chirano Growth Plans

August 26, 2025

Gov’t Pledges to Intensify Reforms in Gold Sector Ahead of Crucial Anti-Money Laundering Assessment

August 26, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.