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debtlimit.jpgIt's the kind of routine financial transaction that would typically go unnoticed.

But by sheer coincidence, California has $1.5 billion in U.S. Treasury bonds coming due on Thursday - the same day the Treasury says it will reach its debt limit if the federal budget impasse continues.

The significance of the date is uncertain. In placing the United States' credit rating on a negative watch this week, the ratings house Fitch Ratings noted "the Treasury would still have limited capacity to make payments," but it may be unable to prioritize debts.

Tom Dresslar, a spokesman for state Treasurer Bill Lockyer, said the state is "extremely confident" it will get paid.

"The banks we work with have been in contact with folks in the U.S. Treasury Department," Dresslar said, "and they assure us that we're going to get all of our money."

About 59 percent of California's $56.6 billion Pooled Money Investment Account, which is used for state cash flow and other purposes, is invested in U.S. treasuries, he said.

PHOTO CREDIT: In this Thursday, Oct. 10, 2013 photo, a pedestrian walks past the U.S. Treasury Building in Washington on a rainy day. AP Photo/J. David Ake


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