Right on the heels of yesterday's Greece post, we get the news that four-week Treasuries are selling at literally no discount.
Crazy
That's right- for the privilege of lending the government money for a month, you get back... your principal. Which means investors literally see four-week government debt as a direct substitute for cash. The craziest part about this is that this four-week debt would mature a few days AFTER we'd hit the drop-dead date by which the government would default without raising the debt ceiling. Which can only mean investors are 100% certain the ceiling will be raised. I hope they're right...
No comments:
Post a Comment