Geithner, Paulson Issue Warning on Risks to US Treasuries Market

The two US Treasury chiefs in office during the global financial crisis warned about potential threats to the $29 trillion Treasuries market ranging from an unsustainable fiscal path to concerns about the political system in Washington.

“Our current trajectory is unsustainable” with regard to federal borrowing, former Treasury Secretary Henry Paulson said in an interview on CNBC Tuesday. “I don’t know whether that means you hit the wall, you know, in six months or six years, or whatever.”

Timothy Geithner, who succeeded Paulson at the start of 2009, said in the same CNBC interview that 10-year Treasury yields are ...