1M Treasury declines to 3.4% today: discussion topic

[chirstsboi_willingservant]

Treasury.gov is reporting today that 1M Treasuries are down to 3.4%. See heres: https://home.treasury.gov/resource-...yield_curve&field_tdr_date_value_month=202304

With the overnight lending rate (aka: Federal Funds rate) at 4.75%, the 1M Treasury is an exceptionally poor buy. Why would banks be piling into 1M Treasuries to the point where the price has climbed/yields have fallen so low?

The current theory I'm finding across the press is that US Debt Ceiling talks have gotten scarier. I haven't been following the political news too closely however, and would like to start this discussion topic on this subject.

Having such a low 1M Treasury Bill rate is absolute insanity given the current market conditions. Are there any other geopolitical events going on that could explain this incredible abnormality?

 

[willprez]

@chirstsboi_willingservant A 1.64% spread between one month and two month is one of the craziest things I have seen.

 

[%CE%A7%CF%81%CE%B9%CF%83%CF%84%CF%8C%CF%82]

@willprez 1-3m tbill spread is largest all time

Euro funded ust cds is over 100bps.

Stress is creeping into funding markets as the gop position gets more insane and the market comes to terms with gs view that the ceiling is in June and not August

 

[colton18]

@%CE%A7%CF%81%CE%B9%CF%83%CF%84%CF%8C%CF%82 GS assumes Treasury matches TSP 401k today and doesn't delay the matching.

Protip, they'll delay it like they did last time.

 

[linktech]

@colton18 That is what these government people do they will either do something like this or they will probably change the definition of the recession. This is probably their way to handle the things and I don't think it is good way.

 

[colton18]

@linktech Whatever is most convenient for them

 

[resjudicata]

@colton18 Just like everything now. Kicking the can.

 

[sarah2012]

@%CE%A7%CF%81%CE%B9%CF%83%CF%84%CF%8C%CF%82 I honestly do not understand all these things but I do understand however the things are really bad.

And if I am being honest I do not see them getting better anytime soon also.

 

[pandemic]

@sarah2012 Why are things bad?

 

[curiosity11]

@sarah2012 Pick a month of any year in history and someone said this

 

[jocurizuma]

@%CE%A7%CF%81%CE%B9%CF%83%CF%84%CF%8C%CF%82 No market is worried about a default