Recapping the day's news and newsmakers through the lens of CNBC.
The reason U.S. Treasuries are the gold standard of debt is pretty simple: everyone everywhere believes the government will make good on its debt obligations, come hell or high water. But on Day Two of the government's partial shutdown, there were dire warnings that the unthinkable could happen if Washington's standoff worsens into a debt-ceiling freeze that causes a Treasury default. That would likely cause interest rates to skyrocket.
"This shutdown is bad. It's painful. It does hurt some people. It costs the taxpayers some real money. But it's not catastrophic. [If] we hit this debt ceiling, That's catastrophic."—Erskine Bowles, former co-chair of the president's bipartisan debt commission and co-founder of the Campaign to Fix the Debt