Debt-Ceiling Fights Make Government Borrowing Even More Expensive Than We Thought
A new paper suggests fights in 2011 and 2013 had ‘spillover effects’ to the entire market for U.S. government debt
The last two debt-limit fights on Capitol Hill, in 2011 and 2013, raised yields on Treasury securities regardless of their maturity by 0.04 and 0.08 percentage points, on average.. Treasury Department’s borrowing costs rose by about $260 million in the 2011 episode and $230 million in 2013