2min chapter

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Are markets pricing in the potential of a default?

Goldman Sachs The Markets

CHAPTER

The Potential Implications of the Debt Limit Raising

If and or when the debt limit is raised, the U.S. will have a lot of debt issuance to handle more than $1 trillion according to industry estimates. Candice: I do think the market can digest it really because this probably will push T-bill rates higher. The flows that we're seeing predominantly move into money markets is an indication of risk aversion.

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