![]() Fidelity’s money market funds seek to provide security and safety for our customers’ cash investments. There are no “cross-default” provisions for Treasury securities-therefore, other US Treasury obligations would not be impacted, meaning US Treasurys maturing on other dates would not be in default, and other securities held in the fund would not necessarily be impacted.Ĭonsistent with federal regulations, money market mutual funds (including the Fidelity® Government Money Market Fund, whose symbol is SPAXX or Fidelity Government Cash Reserves, FDRXX)* invest in debt securities with short maturities and minimal credit risk. If the Treasury were unable to meet a payment on a US government security, that specific security (for example, a US Treasury security maturing on a specific date) could be subject to a technical payment default. What does this mean for investors holding government money market funds? Budget deficits leading to high levels of indebtedness, and other factors impacting the US government's ability to meet its credit obligations, could affect the rating agencies’ analysis of the US government’s ability to manage its long-term debt obligations. Ratings are contingent on the continued economic health of the United States. S&P currently rates Treasury securities AA+. US Treasury securities are currently rated AAA by Moody's. Treasury securities are explicitly guaranteed by the full faith and credit of the US government. In the worst-case scenario, there is a possibility that the US government would no longer be able to issue new debt obligations, and scheduled payments on existing obligations could be delayed. This could include increased volatility in the Treasury market as the debt ceiling deadline approaches. ![]() Government actions and policies, like the debt ceiling, can impact government-issued securities. ![]() If this deal is approved by Congress, the debt ceiling is increased, and the US does not default on its debt, this may improve the risk profile of certain US Treasury securities. What does this mean for investors holding US Treasurys?
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