Debt Divergence

Fear 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.