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30-day bill rates spike amid default worry

  • One-month Treasury bill rates spike higher as they'll be maturing just after the U.S. bumps up against its debt ceiling. Beginning the day at about 3 basis points, the yield jumped to 12 bps at an auction of $35B in paper this afternoon. Not showing up were money-market funds - typical buyers of these securities, but not allowed to partake if there's a chance they won't get paid.
  • The yield has calmed down to 7.4 bps, but that still remains far higher than the 1.8 basis points on three-month bills.
  • Relevant ETFs: SHY, SHV, IEI, BIL, TUZ, FIVZ, DTUL, VGSH, DTUS, DFVS, DFVL, SST, ISTB, TBZ.
Comments (1)
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    If our congressmen and senators would reread their oath, this could go a lot higher. Why on earth would somebody vote to raise the debt ceiling when they can stop the madness by just saying no? On the other hand, I would like to raise my personal debt ceiling and borrow money I don't plan to pay back as well. Maybe some of the readers would like to email me with the name of a banker who would make me such a loan.
    1 Oct 2013, 06:02 PM Reply Like
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