real-time news and commentary for investors
Tuesday, Oct 8
Default watch: One-month T-bill rate soars
- The yield on 4-week T-bills soars to its highest level since Lehman after the just completed Treasury auction prices the paper at 0.355% vs. 0.295% in when-issued trading. The yield was roughly zero a month ago. As a reminder, the money-market funds that are natural buyers of these bills have to refrain if they believe there is a chance they won't get paid.
- Stocks move to session lows, the DJIA (DIA -0.5%), Nasdaq 100 (QQQ -1.6%).
- Related ETFs: DIA, DDM, UDOW, DXD, SDOW, DOG, QQQ, QQEW, TQQQ, QID, SQQQ, PSQ, QLD, QQQE.