The Treasury market is starting to price in the possibility of a US debt default in July
and their current yields, with investors seeking a higher rate of return for the risk they're taking on by buying Treasury securities that are scheduled to mature during the summer months that a debt default could happen.
The one-month Treasury bill currently yields about 3.71%, compared to 5.14% for a 3-month Treasury bill.but that outlook gets more precarious into June, July, and especially August"Investors have bid up the price of these securities seemingly at the expense of debt that matures around the expected x-date... investors are likely demanding more to hold those securities at risk of delayed payment," Gillum explained.
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