House Speaker Kevin McCarthy and President Joe Biden, during a meeting in the Oval Office on May 22. Photographer: Yuri Gripas/Abaca/Bloomberg
There has been a slight reduction in the fear premium being baked into Treasury bills that are most at risk if lawmakers fail to resolve the debt-ceiling crisis. Still, anxiety remains elevated as Democrats and Republicans continue to wrangle over the borrowing limit and the window for reaching a deal continues to narrow.
Yields on securities due in early June—the period in which Treasury Secretary Janet Yellen has warned the United States might run out of borrowing capacity and be unable to make payments—slipped back Thursday after reaching levels above 7 percent the previous day. That move came as comments from lawmakers gave succor to those optimistic that an agreement will be reached.
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