The debt-ceiling deadlock is adding to default concern around a number of soon-to-mature Treasury bills.

• Yesterday we noted that treasury bills were trading like junk bonds… and now they’re getting even worse!
• Yields on securities due in early June surged as investors steered clear of more at-risk bills, with rates on several instruments topping 7%.

Attention is shifting towards major credit-rating agencies, as observers anticipate their potential reactions if the debt-ceiling standoff continues.

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