Chart of the Day: T-Bill Yields

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)

This entry was posted in Black Swan Watch, Bonds, Sovereign Debt, Sovereign Risk and tagged , . Bookmark the permalink.

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