The Hill News

Major U.S. investors, including Pacific Investment Management Co. Manager Bill Gross, have exited the U.S. debt market, citing the increasing riskiness of the assets on its books relative to the interest rate it pays to bond holders. They are not likely to return until interest rates rise. And, with total federal debt having ballooned to an astronomical $14 trillion, a rise in borrowing costs would have catastrophic effects on the government´s ability to meet its debt-service obligations.

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