Insurance against US bonds shot its highest.

The recent political deadlock in Washington over the debt ceiling has caused an increase in the cost of credit default swaps for the United States. This is due to fears that the government may not be able to meet its financial obligations, which would result in a default on its debt. Credit default swaps are insurance policies against such defaults. As the likelihood of a default increases, so does the cost of these swaps.

The impasse has also raised concerns about the US economy's stability and its reputation as a haven for investors. If the government were to default on its debt, it could have significant ripple effects throughout global financial markets.

Many experts are calling for a resolution to this issue to avoid further damage to the US economy and its standing worldwide. However, with both sides seemingly unwilling to compromise, it remains to be seen how this situation will ultimately be resolved.

In addition to the impact on credit default swaps, the political deadlock has also caused uncertainty in other financial markets. For example, investors are becoming increasingly cautious about buying US Treasury bonds, considered some of the safest investments in the world. A default on US debt would mean the government would no longer guarantee these bonds.

Furthermore, the uncertainty surrounding the debt ceiling has also affected the stock market. The Dow Jones Industrial Average and other major indices have shown increased volatility recently as investors react to news about the political impasse. As a result, some companies are delaying investments or hiring until more clarity on resolving this situation.

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