No plans to change haircuts on US Treasury collateral, CME says

CME Group has declared it has no plans to change haircuts on US Treasury bills used as collateral for cleared trades, despite an ongoing political stand-off that could result in a default of US government debt.

US republicans and democrats appeared to make some progress overnight, but politicians only have until October 17 before the US hits its debt ceiling, potentially leaving the government unable to pay interest on its debt.

Many observers believe a compromise is the most likely solution,