The cost of insuring against US default has surged to the highest level in over a decade, as investors grow increasingly concerned about the upcoming negotiations to raise the nation's debt ceiling. The US government must agree to lift the $31.4tn borrowing limit, or risk defaulting on Treasury securities. Spreads on five-year credit default swaps have widened to 50 basis points, more than double the level in January, and the cost of insuring debt against default for one year stood at over 100 basis points, well above 2011 levels, when the first credit downgrade of the US government occurred due to a similar standoff. Treasury bill yields have also hit fresh highs on fears the deadline to raise the borrowing limit may come sooner than expected. Mid-August is the Treasury’s estimate for when they will run out of funds. However, JPMorgan warned that the debt ceiling could become an issue as early as May, so the deadline may come sooner than people think.