Treasury Bill ‘Fret Ceiling’ Breached : ‘Mr. Speaker, Wall Street On The Line . . . Mr. Speaker?! . . . Anybody?’
Michael Matthew Bloomer, October 10, 2013.
Wall Street’s ‘Fret Ceiling’ Breached – Republican Party Seen In Neighborhood
Market Pulse, Oct. 9, 2013, 4:15 p.m. EDT, Ben Eisen
Fidelity sells off short-term T-bills on debt fear
NEW YORK (Market Watch) — Fidelity Investments sold off all short-term Treasury bills coming due around the time the U.S. government hits the debt ceiling, according to news reports Wednesday citing Nancy Prior, president of the firm’s Money Market Group. Treasury bills are an integral part of money market funds, which invest in the safest assets, but some of those funds have stepped out of the T-bill market as the debt ceiling fight has played out. Yields have spiked higher on 1-month Treasury bills as worries mount that a failure to raise the debt ceiling by October 17 could result in delayed payments on the bills. The yield on 1-month bills maturing on October 17 climbed as high as 0.484% Wednesday, up from 0.028% on September 30, according to Tradeweb.
This explains Boehner’s turnaround today. Let’s see whether he can cobble together the votes to proceed with something acceptable. But whatever the administration deems acceptable the Tea Party will nix , and vice versa. What’s that a prescription for?
