U.S. can avoid default in July if Treasury can make it through June cash crunch, Congressional Budget Office says

The Congressional Budget Office on Friday said tax revenues and emergency measures after June 15 “will probably allow the government to continue financing operations through at least the end of July.”

The updated guidance otherwise reiterated the CBO’s earlier uncertainty about the debt ceiling during the first few weeks of June. Even though mid-June tax revenues could ease pressure on the Treasury through July, there’s still the risk of default in the first few weeks of June, the key government forecaster said.

“If the debt limit remains unchanged, there is significant risk...