The bond market sounded the alarm on US default risks as the deadline for reaching a deal on lifting the debt ceiling may come sooner than expected.
On Monday, the US sold $57 billion in three-month Treasury bills — which would mature around when the government could run out of money — at a yield of 5.1%, the highest since January 2001.
He said a vote on the debt ceiling would be coming within weeks, but would be contingent on spending cuts and called on Wall Street traders to pressure the Biden administration, which has said the debt ceiling should not be used for political leverage. "If you agree, don't sit back — join us. Join us in demanding a reasonable negotiation, a responsible debt ceiling, an agreement that brings spending under control," McCarthy said., such as a default that would send markets crashing and put the economy into a tailspin.
No you don't negotiate over money you already spent and then taking hostages.