Investors Seek Safe Haven Amid Looming US Debt Ceiling Deadline.

Investors may turn to long-term Treasurys as a safe haven if the U.S. hits its debt-ceiling limit, according to Sevens Report Research. The U.S. government is potentially just three weeks away from bumping up against its borrowing limit, which would prevent the Treasury Department from selling additional Treasury debt. In 2011, the yield on the 10-year Treasury note fell in the run-up to the U.S. coming up against its borrowing limit, and longer-dated Treasurys performed well. Gold also saw a strong rally during the height of the debt-ceiling drama in 2011. Defensive sectors, including utilities, consumer staples, and healthcare, handily outperformed, while financials and materials both dropped sharply.