Yellen says Oct 18, Tbills reflect expected debt-ceiling drama
US TresSec Yellen said that the borrowing limit could be reached by Oct 18 with the US Tbills market already reflecting the risks. The first chart below highlights how the bill curve until year-end has changed since 2-weeks ago, with mid-Oct to late-Oct bill yields now higher. Another way to look at the way in which pricing has shifted is to look at the spread between bills maturing in mid-Oct vs the early Dec bills.
Source: Reuters (Reporting by Divyang Shah)