{"id":40471,"date":"2013-01-21T14:39:00","date_gmt":"2013-01-21T14:39:00","guid":{"rendered":"https:\/\/www2.thestockmarketwatch.com\/stock-market-news\/money-managers-confident-of-debt-ceiling-deal-the-wall-street-journal\/40468\/"},"modified":"2013-01-21T14:39:00","modified_gmt":"2013-01-21T14:39:00","slug":"money-managers-confident-of-debt-ceiling-deal-the-wall-street-journal","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/money-managers-confident-of-debt-ceiling-deal-the-wall-street-journal\/40471\/","title":{"rendered":"Money Managers Confident of Debt Ceiling Deal: The Wall Street Journal"},"content":{"rendered":"<p><script type=\"text\/javascript\"><!--\ngoogle_ad_client = \"ca-pub-1408583772585547\";\n\/* SMW - News Links *\/\ngoogle_ad_slot = \"3490797620\";\ngoogle_ad_width = 468;\ngoogle_ad_height = 15;\n\/\/-->\n<\/script><br \/>\n<script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script><\/p>\n<p>According to the Wall Street Journal (WSJ), money managers are apparently confident that lawmakers in Washington will a cut a deal on raising federal government\u2019s borrowing limit before the deadline.<\/p>\n<p><span id=\"more-40471\"><\/span><\/p>\n<p>Indeed, as the deadline to resolve the debt ceiling issue nears, money managers have been showing strong interest in buying short-term treasuries. WSJ in its news report pointed out that short-term treasury bills have sold off sharply in the recent past.<\/p>\n<p>Money-market fund managers, who are only allowed to put money on safest short term debts, see this as good opportunity (the drop in demand for short-end treasuries).<\/p>\n<p>Debt ceiling limit, a point from where the federal government will run out funds to finance day to day administrative affairs and repay its obligation to creditors unless the White House and Congressional Republicans find a middle path for raising the borrowing limit, is likely to end in the first week of March.<\/p>\n<p>\u201cWe&#8217;re really not worried about the U.S. defaulting,\u201d said Joseph D&#8217;Angelo, head of money funds at Prudential Fixed Income, speaking to the WSJ.<\/p>\n<p>While the yields on Treasury bill which will be maturing on March 7&#8212; a first big\u00a0 repayment obligation for the federal government after the deadline ends, rose as high as 0.12% in the last week from 0.06% in a week earlier, yields on three months bill ( bill having shortest maturity period sold by the federal government) is only 0.08%.<\/p>\n<p>Just last Friday, news emerged that the House of Republicans was considering to push back the debt ceiling deadline by 3 months or so in order to buy itself some time for convincing the Democrats on their spending cuts demand and to bring down the yields level back to 0.06% mark.<\/p>\n<p>Nonetheless, it doesn\u2019t mean that every money manager is comfortable buying short term treasuries just due to better yields. Since such funds are very conservative, any prolonged policy logjam would prompt these funds to shun juicer yields and look for safer <a href=\"http:\/\/www.knowfinance.com\/category\/options\/\" target=\"_blank\" rel=\"noopener\">options<\/a> instead. Barclays, according to the WSJ, warned last week that in case lawmakers fail to break the logjam before February 15 then nearly 15% of balances meant for government-only money funds could go to bank deposits.<\/p>\n<div class=\"nr_clear\"><\/div>\n<div id=\"nrelate_popular_2\" class=\"nrelate nrelate_popular nrelate_default nr_1col nr_text\"><\/div>\n<p>\t<!--[if IE 6]>\n\t\t<script type=\"text\/javascript\">jQuery('.nrelate_default').removeClass('nrelate_default');<\/script>\n\t<![endif]--><\/p>\n<p>\t<script type=\"text\/javascript\">\n\t\/* <![CDATA[ *\/\n\t\tnRelate.domain = \"www2.thestockmarketwatch.com%2Fstock-market-news\";\n\t\tvar entity_decoded_nr_mp_url = jQuery('<span\/>').html(\"https:\/\/web.archive.org\/web\/20130124084623\/http:\/\/api.nrelate.com\/mpw_wp\/0.51.2\/?tag=nrelate_popular&domain=www2.thestockmarketwatch.com%2Fstock-market-news&url=http%3A%2F%2Fwww2.thestockmarketwatch.com%2Fstock-market-news%2Fmoney-managers-confident-of-debt-ceiling-deal-the-wall-street-journal%2F40471&nr_div_number=2&maxageposts=7200&increment=1\").text();\n\t\tnRelate.getNrelatePosts(entity_decoded_nr_mp_url);\n\t\/* ]]&gt; *\/\n\t<\/script>\n\n\n<div class=\"nr_clear\"><\/div>\n\n\n<script id=\"mNCC\" language=\"javascript\">  medianet_width='600';  medianet_height= '250';  medianet_crid='814932888';  <\/script>  <script id=\"mNSC\" src=\"https:\/\/web.archive.org\/web\/20130124084623js_\/http:\/\/contextual.media.net\/nmedianet.js?cid=8CUT71M67\" language=\"javascript\"><\/script> \n\n\n\n\n<!-- AddThis Button BEGIN -->\n\n\n<div class=\"addthis_toolbox addthis_default_style addthis_32x32_style\">\n<a class=\"addthis_button_preferred_1\"><\/a>\n<a class=\"addthis_button_preferred_2\"><\/a>\n<a class=\"addthis_button_preferred_3\"><\/a>\n<a class=\"addthis_button_preferred_4\"><\/a>\n<a class=\"addthis_button_compact\"><\/a>\n<a class=\"addthis_counter addthis_bubble_style\"><\/a>\n<\/div>\n\n\n<script type=\"text\/javascript\">var addthis_config = {\"data_track_addressbar\":true};<\/script>\n<script type=\"text\/javascript\" src=\"http:\/\/s7.addthis.com\/js\/250\/addthis_widget.js#pubid=pennystocksfinder\"><\/script>\n<!-- AddThis Button END -->\n\n\n\n\n<p>More Posts by this author<\/p>\n\n\n\n<ul>\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-slip-as-safe-haven-bets-dry-out\/40572\">\nGold Prices Slip as Safe Haven Bets Dry Out<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/apples-q1-revenue-outlook-disappoints-street-shares-hammered-in-afterhours-trade-aapl\/40571\">\nApple\u2019s Q1 Revenue, Outlook Disappoints Street; Shares Hammered in Afterhours Trade (AAPL)<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/market-update-after-hours-january-23\/40556\">\nMarket Update After Hours January 23<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-end-higher-sp-500-moving-close-to-1500-level\/40550\">\nStocks End Higher; S&#038;P 500 Moving Close to 1,500 Level<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/gold-prices-settle-lower-silver-prices-gain-7\/40549\">\nGold Prices Settle Lower; Silver Prices Gain<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/stocks-headed-for-a-higher-finish-42\/40548\">\nStocks Headed for a Higher Finish<\/a><\/li>\n\n\n\n\n\n\n<li><a href=\"http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/mcdonalds-q4-earnings-beat-streets-estimate-but-short-term-sales-outlook-disappoints-mcd\/40546\">\nMcDonald\u2019s Q4 Earnings Beat Street\u2019s Estimate but Short-Term Sales Outlook Disappoints (MCD)<\/a><\/li>\n\n\n\n<\/ul>\n\n\n\n\n\n\n<hr>\n\n\n\n\n\n<table style=\"border:none;margin:0;\">\n\n\n<tr>\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n<img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/web.archive.org\/web\/20130124084623im_\/http:\/\/www2.thestockmarketwatch.com\/stock-market-news\/wp-content\/uploads\/userphoto\/5.jpg\" alt=\"edliston\" width=\"125\" height=\"125\" class=\"photo\"><\/td>\n\n\n\n\n<td style=\"padding:5px;vertical-align:top;\" valign=\"top\">\n\n\n<div style=\"font-size:11pt;\"><b>Post Written By: Ed Liston <\/b><\/div>\n\n\n\n\n<div style=\"font-size:10pt;\">\n\nEd Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.\n<\/div>\n\n\n<\/td>\n\n<\/tr>\n\n<\/table>\n\n\n\n\n\n\n\n<!--script type=\"text\/javascript\">\ngoogle_ad_client = \"pub-1408583772585547\";\n\/* 336x280, created 7\/9\/11 *\/\ngoogle_ad_slot = \"3552319058\";\ngoogle_ad_width = 336;\ngoogle_ad_height = 280;\n\n<\/script>\n<script type=\"text\/javascript\"\nsrc=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\">\n<\/script-->\n\n\t\t\t\t\t\t\n\n\t\n\n<div style=\"margin:5px;margin-bottom:20px;font-size:11pt;\">&laquo; <a href=\"https:\/\/thestockmarketwatch.com\/stock-market-news\/\">Return to Stock Market News<\/a> &laquo; <\/div>\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to the Wall Street Journal (WSJ), money managers are apparently confident that lawmakers in Washington will a cut a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50312,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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