With all eyes focused on China (shadow bank liquidity fears), Emerging Market currencies, and US equities; something very concerning has been going on in short-dated Treasury Bills. The ultra-short-term remain bid (near zero yield) as the saftey crush demand bids for them but move out one month - across the dreaded late-February debt-ceiling debacle maginot line - and suddenly yields are exploding! The March 16th yields have screamed from 1bps to 12.75bps in the last 2 days - now above the October debt ceiling levels..
Bills around the debt-ceiling are exploding...
[4]
While near-term bill demand is huge as safety of cash is sought...
[5]