Oct. 4 at 12:14 PM
$TLT "If the shutdown drags on, it could also raise fears about the credit quality of U.S. debt"
...
“But this time there may be some big changes because both sides are being very strategic about it. The Republicans are saying, ‘this is a good time for us to implement the kind of changes Elon Musk put in place with DOGE.’ ... The Democrats are really bearing down and saying, ‘this is our turn to be strategic and get back the legislation we want to put in place,’” he added.
If the shutdown drags on, it could also raise fears about the credit quality of U.S. debt, hitting Treasury prices and raising yields. Moody’s downgraded the U.S. credit rating in May and noted that the “rating also could be downgraded if policy effectiveness or the strength of institutions were to erode to such a degree that materially weakens the sovereign’s credit profile.” JPMorgan traders told clients this week a credit downgrade was a possible “tail risk” of the shutdown.
https://www.cnbc.com/2025/10/01/us-treasury-yields-us-government-shuts-down-.html
