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4-Week Bills Price Below Nosebleed Levels, Still Yield Second Highest In Recent History

Tyler Durden's picture





 

Following the battery of optimistic news from this morning that the debt deal is all but done, yields on short-term debt, soaring until about 9am, have tumbled as fears of an immediate default have been taken off the table. And moments ago today's most important auction, that indicating whether the "Money Market Vigilantes" have gone home, the auction of $20 billion 4-Week Bills took place. As a reminder, it was last week that yields on the same issue soared to a high of 0.35% - the most "distressed" yield since October 2009. Today, the fireworks were far more muted, however with a high rate of 0.24%, this was still a very elevated closing level, and still the second highest in years. So the question becomes: is this higher yield just a function of the lack of a definitive deal on the table, or has the broken Congress now assured that going forward so called "money equivalent" Treasury paper will have a step-wise higher clearing haircut, and if so, just how substantial is the structural damage to money markets, especially if all Congress does is kick the can forward by a few months?

 


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Wed, 10/16/2013 - 11:48 | Link to Comment Max Damage
Max Damage's picture

What a truely pathetic yield, considering the ongoing default!!!!

MOARRRRRRRR

Wed, 10/16/2013 - 11:50 | Link to Comment adr
adr's picture

We can't have this kind of drama on a Wednesday. THIS IS FRIDAY DRAMA!!!

Maybe Congress thinks its Thursday.

Wed, 10/16/2013 - 11:51 | Link to Comment Dr. Engali
Dr. Engali's picture

A default, whether outright or by inflation, is still a default.

Wed, 10/16/2013 - 11:54 | Link to Comment Pairadimes
Pairadimes's picture

Dow 17,000

Dow 10,000

Vote - which milestone will we see first?

Wed, 10/16/2013 - 12:32 | Link to Comment dracos_ghost
dracos_ghost's picture

Dow 20,000. Fucking full retard going on here.

Wed, 10/16/2013 - 12:04 | Link to Comment SheepDog-One
SheepDog-One's picture

PLENTY more blood to be squeezed out of this turnip, we ain't seen nothin yet!

Wed, 10/16/2013 - 12:31 | Link to Comment edwardo1
edwardo1's picture

ZH writes,

"So the question becomes: is this higher yield just a function of the lack of a definitive deal on the table, or has the broken Congress now assured that going forward so called "money equivalent" Treasury paper will have a step-wise higher clearing haircut"

-I'll take "or" for 60 trillion, Tyler.

and if so, just how substantial is the structural damage to money markets, especially if all Congress does is kick the can forward by a few months?

-How substantial? Try terminal, but, going forward, some days will be better than others.

Wed, 10/16/2013 - 13:19 | Link to Comment BullionTweet
BullionTweet's picture

This is a good sign that the "canary in the coal mine" is in great distress. Confidence is being lost over this farcical tragedy to the point where, even if kicked down the road, confidence lost will not be regained. The Royal Flush.. nowhere to go but down for this currency. Got physical gold & silver?

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