NATIONAL DEBT/TREASURY: “Early signs of concern about the federal debt ceiling are creeping into the financial markets, as President Donald Trump pressured lawmakers over how to proceed on the issue.
While stocks remain sturdy, the yields on Treasury bills that mature shortly after the debt-limit deadline have been on the rise. A Treasury bill due Oct. 12 has a higher yield than one that matures Nov. 24, according to Tradeweb. That is unusual for fixed-income securities, which typically yield more for longer maturities.
That kink suggests investors are worried Washington may fail, and yields are rising to compensate for the risk investors due their money in October won’t be paid on time. The yields have been on the rise this summer, but the differential has picked up in recent days, and sooner than during debt-ceiling standoffs in 2011, 2013 and 2015.
Mr. Trump in Thursday tweets blamed the congressional Republican leadership for what he called the ‘mess’ awaiting lawmakers this fall as they seek to raise the nation’s borrowing limit and, separately, keep the government running when funding runs out at the end of September.”
-Ben Eisen and Kristina Peterson, “Markets Eye Debt Ceiling With Unease,” The Wall Street Journal online, Aug. 24, 2017 07:35pm