Somebody’s selling. That is a big move in a big market. The “freight from safety” trade on fears of credit downgrade may just be enough to light a fire under the arse of the politicos. We had a huge capital gain in 2007 on some T-Bill positions as they moved from around 2 percent to .15 bps in a matter of days. Imagine taking capital losses on T-Bills and the consequences thereof? To speak words the
politico partisan class might understand, a spike in interest rates will be tantamount to a massive spending or tax increase.
Speaking of literal mile wide arses, hat tip to Craig B!
(click here if chart is not observable)