Financial markets are sending mixed signals as uncertainty reaches new highs. On Feb. 25, the US debt ceiling was raised from $36.1 trillion to $40.1 trillion, marking another massive expansion in government borrowing.
Following a historical pattern, the benchmark 10-year Treasury yield reacted to the news by dropping from 4.4% to 4.29%. While this may seem counterintuitive, markets tend to interpret debt ceiling resolutions as stabilizing events, reducing near-term uncertainty even if they…
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