House GOP plan to vote on raising the debt ceiling
The Treasury Department has said that it expects to run out of emergency measures to prevent a breach of the current debt limit between mid-February and early March.
Investors in US Treasury bonds, who most directly bear the risk of a government default, haven’t shown alarm.
The last time Congress fought over raising the ceiling, Obama signed an increase on Aug. 2, 2011, the day the Treasury Department warned that US borrowing authority would expire. Standard & Poor’s cut the nation’s credit rating. Still, yields on 10-year US Treasury notes declined to 2.56 percent on Aug. 5 and have continued to drop. The yield fell four basis points, or 0.04 percentage point, to 1.84 percent at 12:43 p.m. in New York, according to Bloomberg Bond Trader pricing.
‘‘The worst thing for the economy is for this Congress and this administration to do nothing to get our debt and deficits under control,’’ Ryan said yesterday. ‘‘We think the worst thing for the economy is to move past these events that are occurring with no progress made in the debt and deficit.’’