Investor Anxiety Grows as US Debt Ceiling Looms

Negotiations to prevent the US government from running out of money are headed down to the wire, with the Treasury saying Congress must agree to raise the debt ceiling by 1 June or the US will run out of cash to pay its bills, resulting in economic disaster. Fitch, one of the big credit ratings firms, has said the impasse could prompt it to lower America's rating. While markets have remained remarkably unmoved, betting that a deal will get done, investors are demanding higher payments in exchange for holding short-term US government bonds that could be most affected by a default.