From Invesco: The Treasury market received a reprieve in September when the White House and Congress agreed on legislation coupling hurricane relief funding with a suspension of the debt ceiling until Dec. 8.1
The agreement puts off a potentially contentious political debate and keeps the government funded until at least year-end. However, markets have now turned their focus to December and beyond. What should we expect to see in the Treasury market if a new debt ceiling deal can’t be reached by then?