Debt ceiling concerns spark market anxiety and caution for investors.

Investors are demanding historically high yields for US Treasury notes that mature in July, which by some estimates is when the United States will default on its debt, absent any legislative action. Yields for three-month Treasury notes closed at 5.1% Thursday, exceeding yields for longer-term Treasury notes. Investors’ anxieties are also evident in spreads on US five-year credit default swaps, which have widened to 50 basis points, according to S&P Global Market Intelligence data. If lawmakers don’t raise the nation’s borrowing limit by June, the federal government runs the risk of defaulting on its debt obligations, which would be catastrophic for the economy and put millions of jobs in jeopardy.