The US government's default risk is rising: 1-year US credit default swaps (CDS) have risen to 52 basis points, near the highest since 2023. Excluding the 2023 debt ceiling crisis, the cost of insurance against the US government's default is at its highest in 12 years. Furthermore, outstanding volume of credit default swaps has risen by ~1 billion this year, to 3.9 billion, the second-highest since 2014. This comes as investors are increasingly concerned about the US government's rising deficit. The US reached its statutory borrowing limit in January and employed “extraordinary measures” to avoid a default. The debt ceiling crisis has never truly been resolved.