Buyers of U.S. debt are sending Congress a message of disapproval over the budget impasse and the debt ceiling, Newedge Senior Director Larry McDonald said Wednesday.
"There's really been a buyer's strike in the Treasury market—from foreigners, anyway, and I expect a little bit more of that," he said. "It's going to create probably some more stresses for the Treasury market, maybe in the first quarter or maybe toward the end of the year. But for right now, I think that they're just really kind of testing.
"They're just sending a message to Washington that they've had it, just like we all have had it," he said.
McDonald made the comments after news that Fidelity had sold off all U.S. debt scheduled to come due around the time that the government could hit its borrowing limit.