Recapping the day's news and newsmakers through the lens of CNBC.
Forced to bet, a smart gambler would say there will be no debt-ceiling default when the deadline arrives Oct. 17, because the implications are so horrid Congress won't let that happen. But some experts are starting to worry about an inadvertent default caused by a stumble or mistake as Congress treads closer to the brink. Something like that did happen in 1979. Making a default more likely, members of Congress might not get enough pressure to bargain because voters and business leaders just don't believe a default will occur. Growing worries are reflected in a sharp rise in Treasury bill yields, as many investors shun short-term bonds like one-month Treasuries. A brief interruption in bond earnings would be especially hard on securities maturing soon.
"Almost bizarrely, the market's reaction—or lack of one in this case—may actually contribute to an outcome everyone has been railing against."—CNBC's Andrew Ross Sorkin
"The reason financial markets have been relatively calm is that nobody believes the U.S. will default on its debt. But it is interesting that the one-month U.S. Treasury bill has started to react to that and that the yield has shot up quite sharply over the past couple of weeks."—Kelvin Tay, regional CIO for southern Asia-Pacific at UBS Wealth Management