Oct
19

Debt Divergence

treasuryFear that the US might not raise the debt ceiling is making itself felt. Yields on Treasury bills maturing 11/5/15 and 11/12/15, the date falling immediately after the government runs out of money on 11/3/15, rose slightly, with other maturities unchanged. The closer we come to 11/3/15 without a solution, the higher short-term yields will go as investors increasingly shy away from bills with any hint of risk, albeit miniscule.

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