The Treasury Bill Market Doesn't Like How Close We're Playing This

[xchrom]

http://www.businessinsider.com/t-bill-yields-surge-ahead-of-debt-ceiling-2013-10



If Congress is unable to produce a budget deal today, the U.S. will hit its October 17 debt ceiling, which is when the Treasury Department will no longer have the authority to borrow money by issuing Treasury securities like T-Bills, T-Notes, and T-Bonds.
The stock market has been pretty sanguine considering the near-term uncertainty. Then again, the stock market is a long-term investment vehicle.

Uncertainty is manifesting in short-term securities, particularly in Treasury bills where yields continue to blow out on fears that the government won't pay up when these securities mature.

Morgan Stanley's Hans Redekar included this chart (above) of the T-Bill yield and the 5-year U.S. credit-default swap (CDS) spread, which measures the cost of insuring against a credit event like a default. Yields and spreads are blowing out reflecting investors' worry about the near-term.



Read more: http://www.businessinsider.com/t-bill-yields-surge-ahead-of-debt-ceiling-2013-10#ixzz2hsxcZ86T

[Turbineguy]

1. A guy on the NBC nightly news last night

was telling America that every 1 percent rise in interest would cost US taxpayers 120 billion dollars per year going forward.

The Tea Party are not only idiots, but expensive idiots as well.