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What The Debt Ceiling And Fed Tapering Could Mean For Interest Rate Markets

The debt ceiling debate in Congress is becoming louder, and markets are beginning to price a premium on U.S. debt by the end of the year. The Treasury is spending down its cash holdings by $1.5 trillion, the lowest level in recent times. The Federal Reserve reverse repo activity is at an all-time high to mop up the Treasury’s cash spending.

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