Moody's on US debt ceiling now a "real threat"

Moody’s Analytics on the US debt ceiling showdown:

• We now assign a 10% probability to a breach.
• If there is a breach, it is much more likely to be a short one than a prolonged one.
• But even a lengthy standoff no longer has a zero probability.
• What once seemed unimaginable now seems a real threat.

Adds:

• “spiking interest rates and plunging equity prices,” even if it’s just a brief breach of the debt limit

House leader McCarthy and US President Biden are the two key players in negotiations.