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Threat of US Default Boosts Its Borrowing Costs

The threat of a U.S. default on its financial obligations has pushed up the country's borrowing costs this month as investors worry that they may not be able to recoup their investments. U.S. Treasury notes have long been viewed by investors as a safe harbor, securities that will always be repaid. But demand for U.S. securities weakened and interest rates increased as the impasse between U.S. President Barack Obama, a Democrat, and his Republican opponents over a partial government ...

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