Treasury Bills Are Sounding the Debt-Ceiling Alarm Yet Again
- Bills maturing Oct. 3 yield more than longer-dated ones
- Those bills could face repayment delay if debt ceiling is hit
This article is for subscribers only.
The U.S. is creeping up against the federal debt ceiling, and the bond market is predicting that the partisan battle over what to do about it once again will go down to the wire.
A dislocation has emerged in the Treasury bill curve, with securities that mature on Oct. 3 yielding more than those that expire later. The Treasury sold $36 billion of three-month bills at 2.145% on Monday, about 8 basis points higher than the previous week’s sale.