This suggest the administrations claim of a market catasrosphy is overstated

Reuters:
Government shutdown. Federal default. These looming political threats to the U.S. economy might scare investors to buy more U.S. Treasuries in the coming days as they seek a shelter for their cash.

While a protracted government shutdown, and particularly a default, could harm to the image of Uncle Sam's debt, its safe-haven appeal looks unchallenged in the short term.

Worried about rising chances that federal workers and contractors won't get paid if much of the government shuts down on October 1 amid a political standoff in Washington, investors are expected to go by the conventional crisis playbook - dumping assets perceived to be higher-risk and rushing into those seen as lower risk.
...
The government will slash spending before it would default on its debt.  The markets know that and they still see treasuries as a safe investment.  If Obama actually challenges that assumption the debacle would be on him.

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