The federal government could reach its debt limit of $11.315 trillion as soon as the spring, Congressional Budget Office analysts said yesterday, causing municipal market participants to worry that the Treasury could halt sales of State and Local Government Series securities to muni issuers for advanced refunding escrows.

The analysts made the remarks during a briefing on the outlook for the budget and economy. They warned that the federal budget deficit could reach $1.2 trillion, or 8.3% of gross domestic product this year - a huge increase from the $438 billion they projected earlier in September.

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