The gap between 1 month and 3 month Tbills has never been this wide. This gap opened up over the past month.
The debt ceiling impasse is likely to occur within that gap, but this type of gap didn’t open during prior debt ceiling debacles, and so some analysts argue it’s more of a collateral shortage issue.
Do we have to expect an "event" between 1 month and 3 month in future?
Could it be a high demand for ultra short treasuries from money market funds as people realized how banks (don't) hold their money?
This is exactly it. This banking crisis isn't over.
some fear over treasury auction shutdown over budget impasse
Crazy. People are afraid, with cracks again showing up in the most secure part of fiat's base layer. Earthquake.
You're my first zap! Finally figured it out lol! Subscriber to your premium newsletter here, keep it up please.
Long live Jeff Snyder. BTW Lyn, when will Pete get you and Jeff on WBD podcast?
What's a collateral shortage issue?
