Debt Deal Digest

Fiscal spending to remain an important driver for the bull market as hawks lack courage to reign in excessive deficits.

On January 19, 2023, the US Treasury reached their $31.4tn debt limit. As a result, they stopped issuing treasury securities and began drawing down their treasury general account (TGA). This caused three primary concerns in financial markets:

1. Republicans and Democrats might not be able to reach a deal before the TGA is empty.

2. If they reach a deal before t…