Debt Ceiling Halts Bond Sales
The Treasury announced today that sales of savings bonds will be suspended tonight until further notice because Congress has failed to pass legislation increasing the national debt limit.
The $2.32-trillion debt ceiling expires at midnight, reverting to the “permanent” level of $2.111 trillion. Because that lower level already has been exceeded, the government cannot issue any new securities. The House has approved a new debt ceiling of $2.565 trillion but the Senate is not expected to act until next week, when lawmakers plan to attach to the bill an amendment to strengthen the Gramm-Rudman balanced budget law.
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