Market whispers are creeping up and there seems to be some increased concerns over a US default as budget talks continue between Democrats and Republicans. CNBC Asia reported earlier that US 1 Year CDS rates are currently higher than Indonesia and Slovenia. G8 leaders are also meeting in France to discuss a wide range of pressing financial issues. US 1 Year CDS trade volumes however remain minute relative to the total US debt outstanding.
Another interesting point is that the price of the US 1 year Treasury yield is currently 0.18%, which is almost at the lowest rate year-to-date. Mr Market is sending mixed signals.