HK lifts Treasury discount as debt deadline approaches
HONG KONG (AFP) - Hong Kong's stock exchange has cut the value of US Treasury bills put up as collateral by traders, in a sign of concern that the US debt standoff could end in a devastating default.
Hong Kong Exchanges and Clearing Ltd (HKex), which operates the city's stock exchange, said it had increased the "haircut" on some bills from one percent to three percent.
Global markets have been nervously watching events on Capitol Hill, with the US government set to run out of cash if it is not given authority to raise its borrowing limit before October 17.
Failure to do so will mean it is unable to pay its bills and service its debts, plunging it into a default that economists warn will likely spark another worldwide recession.