Democratic leaders are discussing how to increase the federal debt ceiling after a warning by Treasury Secretary Janet Yellen that her department will effectively run out of cash around Oct. 18 unless Congress suspends or increases the limit. “Treasury is likely to exhaust its extraordinary measures if Congress has not acted to raise or suspend the debt limit by October 18,” Yellen said in a letter Tuesday to congressional leaders. Yellen said at a Senate Banking Committee hearing that “catastrophic” results would follow a failure to address the debt limit, including a “financial crisis” and recession. Yellen’s latest timeline is somewhat sooner than many on Wall Street anticipated, and her warning intensified signs of financial market concern amid an impasse between Republicans and Democrats on addressing the debt ceiling. Yields on Treasury bills maturing around Oct. 18 rose more than those on other securities. A broader selloff in Treasuries contributed to the biggest slump in equities since May. Subscribe to our YouTube channel: https://bit.ly/2TwO8Gm Subscribe to our newest channel Quicktake Explained: https://bit.ly/3iERrup Bloomberg Quicktake brings you live global news and original shows spanning business, technology, politics and culture. Make sense of the stories changing your business and your world. To watch complete coverage on Bloomberg Quicktake 24/7, visit http://www.bloomberg.com/qt/live, or watch on Apple TV, Roku, Samsung Smart TV, Fire TV and Android TV on the Bloomberg app. Have a story to tell? Fill out this survey for a chance to have it featured on Bloomberg Quicktake: https://cor.us/surveys/27AF30 Connect with us on… YouTube: https://www.youtube.com/user/Bloomberg Breaking News on YouTube: https://www.youtube.com/c/BloombergQuickTakeNews Twitter: https://twitter.com/quicktake Facebook: https://www.facebook.com/quicktake Instagram: https://www.instagram.com/quicktake