The Globe and Mail reports in its Wednesday edition that U.S. and Canadian stocks finished sharply lower Tuesday, and short-term government bond yields shot up, as investor jitters grew over a lack of progress in U.S. debt limit talks. A Reuters dispatch to The Globe says that representatives of U.S. President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday, as the deadline drew closer to raise the government's $31.4-trillion (U.S.) borrowing limit or risk default. Debt limit worries pushed yields on one-month U.S. Treasury bills to record highs at 5.888 per cent. Michael Wilson, Morgan Stanley's equity strategist, said a U.S. debt default is not priced into the market. Even if the two sides agree on a deal, it could still have implications for economic growth, he said. "Is that going to be an immediate impact, or will it be later? We think there's a bit of both," Mr. Wilson said. The S&P/TSX Composite Index ended down 205.05 points at 20,146.01, its lowest closing level since March 31. The Canada 10-year yield Monday touched its highest level since March 9 at 3.258 per cent. Helping to limit the Toronto market's decline was a gain of 1.3 per cent for the energy sector.