Ratings agency, Moody’s Investors Service, issued a warning to US government officials that the nation’s sovereign rating will be at risk if the debt limit on treasury financing is not lifted. A bill that would raise the US debt limit by US$2.4 trillion failed to win house passage on 31 May.

Treasury Secretary, Timothy Geithner, has warned of the hike in borrowing costs if the house fails to raise the
debt ceiling by 2 August. Yields on 10-year Treasuries climbed to 3.04% from 3.01% before the Moody’s
announcement and a six-month low of 2.94% yesterday.

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Ivan Guan is the author of the popular book "FIRE Your Retirement". He is an independent financial adviser with more than a decade of knowledge and experience in providing financial advisory services to both individuals and businesses. He specializes in investment planning and portfolio management for early retirement. His blog provides practical financial tips, strategies and resources to help people achieve financial freedom. Follow his Telegram Channel to join the FIRE community.
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