Inflation ( CCPI)-2.1% (Nov 2024)
GDP4.7% (2Q 2024)
Unemployment4.5% (1Q 2024)
3M T-Bill Rate8.73%
12M T-Bill Rate9.08%
2Y T-Bond Rate9.40%/ 9.50%
4Y T-Bond Rate10.55% / 10.65%
USD/LKR290/291
Reserves $6.46Bn (Nov 2024)
Cum. Trade Deficit $4,762 Mn (Oct 2024 cumulative)
Cum. Fiscal DeficitLKR 970Bn (Sep 2024 cumulative)

US credit rating at risk, investors are nervous

InternationalMay 25, 2023
US credit rating at risk, investors are nervous

The home of the "preeminent world's reserve currency" is now on "rating watch negative" as a result of the increased "political partisanship that is hindering reaching a resolution to raise or suspend the debt limit" despite the fast approaching ‘x date', which is when the US Treasury exhausts its cash position and capacity for extraordinary measures.

Fitch noted the US reached its USD 31.4trn debt limit on 19 January 2023, since which date the US Treasury had taken extraordinary measures to avoid breaching the ceiling, which could be exhausted as early as 1 June - the date repeatedly cited by US Treasury secretary Janet Yellen. (Reported by Investment Week UK)

Disclaimer

Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.