Equity and bond markets have calmed since last month’s regional bank failures sparked contagion fears, but political brinkmanship over the U.S. debt ceiling risks reigniting volatility, warns CreditSights.

“There has been no discernible progress made on a deal, which is likely to result in debt ceiling negotiations coming down to the wire once again,” CreditSights analysts led by global head of strategy Winnie Cisar said in a note Monday. 

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