WASHINGTON, (Reuters) – The U.S. Treasury may be able fund government operations until the second half of January without a higher debt limit increase according to a new estimation by Wrightson ICAP (LON) Monday.

Wrightson said in a note to clients https://www.wrightson.com/mmo/current-mmo/mmo-for-november-22-2021 that based on the Treasury’s debt issuance plans, the department should be able to go well past a new Dec. 15 deadline set last week by Treasury Secretary Janet Yellen. Following a $118-billion transfer to Highway Trust Fund she estimated that Treasury might not have enough resources and be at risk of default.

Yellen urged Congress again to raise or suspend the default debt limit as quickly as possible. However, a longer deadline would allow Democrats to maneuver more as they try to pass a $1.75 trillion climate and social spending bill with no Republican support.

Wrightson stated, “Our updated base case shows that Treasury will be able to fulfill its obligations up until the first part of January.” While there’s a chance it may run into difficulties in December’s final days, Wrightson also noted that there was also the possibility that the drop-dead dates might arrive after the non-withheld individual income tax deadline of mid-January.”

Wrightson indicated that while the Treasury hoped the debt limit issue would be settled by mid-January it had already begun to adjust its bill issuances in case it wasn’t “still on a tight leash” for the second quarter of December.

The Treasury would be able to settle end-December bond and note auctions by selling a 35-day cash-management bill that was due to sell on Tuesday.

According to the firm, it expects a series of cash management bills issuances “off-cycle”, in the coming weeks.

Unavailable for comment, a spokesperson from the U.S. Treasury did not respond to our request.