As the U.S. shutdown continues, what exactly can happen?
On October 17, when the government is projected to reach its debt ceiling, $85 billion of Treasury bills will mature. The interest rate on that T-bill issue last traded at 0.12 percent, up 1 basis point from late on Thursday and up 8 basis points on the week. The benchmark 10-year U.S. Treasury note was down 10/32, its yield at 2.651 percent.
The U.S. shutdown delayed the government's release of non-farm payrolls data for September, which had been scheduled for Friday. The Labour Department's monthly jobs report has been playing a key role in the Federal Reserve's assessment of the economy in its deliberations on when to scale back stimulus.
The problem is paying the bills when the balance sheet says there is no money, I wonder if they have taken advice from Laim Byrne?