For some context, the deadline for this is currently early June, and the can is usually on the way. We’ll likely see Yellen announce a revised date in the near future on this matter.
However, JPMorgan says it expects both the debt ceiling debate as well as the federal funding debate to come “perilously close” to deadlines. Adding that there is a “non-trivial risk” that US Treasury bonds
US Treasury bonds
US Treasury bonds are securities in the form of government debt instruments issued by the US Treasury Department to finance government spending as an alternative to taxes. US Treasury securities actually consist of four different types of marketable treasury notes. This includes treasury bills, treasury bills, treasury bonds, and treasury inflation-protected securities (TIPS). The US government sells these securities at auctions conducted by the Federal Reserve Bank of New York,
US Treasury bonds are securities in the form of government debt instruments issued by the US Treasury Department to finance government spending as an alternative to taxes. US Treasury securities actually consist of four different types of marketable treasury notes. This includes treasury bills, treasury bills, treasury bonds, and treasury inflation-protected securities (TIPS). The US government sells these securities at auctions conducted by the Federal Reserve Bank of New York,
Read this term He will face a case of technical default. The company also says it expects the Treasury to run out of available resources by mid-August.
The nature of the situation depends on the current tax season, and the federal government usually runs into deficits closer to summer (around the end of the third quarter), which is the real danger. But as we’ve seen in the past, this is something that tends to get done one way or another at the end of the day as lawmakers are more likely to raise the borrowing cap if all else fails.