Investors Are Getting Ever More Nervous About a Treasury Default
Last week I linked to a report showing a sharp increase in rates for treasury bonds that mature in late October. This is a signal that markets are starting to get genuinely nervous about the possibility of delayed payment on these notes. Today, Neil Irwin passes along the latest on this. As the chart on the right shows, the rates on short-term bills have hovered right around zero percent for all of September. Then, starting October 1, rates started to rise. In the past 48 hours, they’ve spiked enormously:
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