The U.S. budget deficit is soaring into “unfamiliar territory” and could reach a “tipping point” where investors no longer want to buy Treasury securities, Congressional Budget Office director Douglas W. Elmendorf warned at a conference here yesterday.

Elmendorf made the remarks before members of the National Association for Business Economics after the CBO on Friday projected the deficit would rise to $1.5 trillion in 2010 and $1.3 trillion in 2011 under the Obama administration’s proposed fiscal 2011 budget.

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