Government default impact to bond-invested money market funds?


Greetings, educated community! I have a Fidelity account keeping no – invested funds in SPAXX- a money market fund invested in government bonds and playing ~4% interest.

I was hoping someone would kindly tell me if a federal default would impact funds held in this vehicle? I know it’s generally safe, but looking toward June I’m nervous. I wonder if it’s time to pull reserves into a standard banking account until after the debt ceiling question is resolved.

Any thoughts greatly appreciated.


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