Short End of the Treasury Market Goes Totally Nuts. Doubts Creep in Over Debt Ceiling?

April 21, 2023

by Wolf Richter Wolf Street

The good folks in Congress are surely too worried about their own wealth, and sheer greed will keep them from pushing the US into default. But…

Today was another weird mess – and by far the biggest weird mess – in a series of daily weird messes in the very short end of the Treasury market, with Treasury securities that have remaining maturities of around one month. The one-month yield plunged 55 basis points today to 3.40% at the close – meaning prices of these securities jumped amid huge demand. Intraday was down as much as 75 basis points. Panic-buying frenzy! Since March 31, the one-month yield has plunged 134 basis points (red line below).