Traders piled into the 1-month T-bill on growing concerns about the debt ceiling on Thursday. The 1-month T-bill rate plummeted more than 40 basis points, to around 3.3%, or the lowest level since mid-October during New York afternoon trading, according to Tradeweb. Via phone, Tom di Galoma, managing director and co-head of global rates trading at BTIG LLC, said the move reflects traders’ view that “the debt-ceiling crisis has been elevated.” “While there are still a lot of negotiations that need to go on, a lot of firms that previously thought the government could pay its bills through August, are now thinking that the government can pay its bills through June,” he said.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.