I have invested 100k USD in SGOV. Assuming that the Democrats and the Republicans do not agree in due time to raise the debt limit, how would T-bills and bonds behave? I do not have historical data at hand, so if you remember the previous instances of this situation I would appreciate sharing them heer with me. Thank you.
My opinion is that left without a budget, the government would find itself unable to pay the interest on those T-bills, so their price would fall (temporarily - but how long does this mean?). Is my reasoning correct?
Submitted April 22, 2023 at 05:59AM by My-Internet-Persona https://ift.tt/SUsa0lR
