Investors Seek Safe Havens as US Debt Default Looms

Continued uncertainty about a debt-ceiling resolution pushed yields on Treasury bills maturing between early and mid-June toward 6%. The Treasury bill market is in a state of dislocation, with yields ranging from as little as 2.924% to as high as 6.141%. Investors and traders are factoring in at least some risk that the government could cross the X-date without a debt-ceiling resolution. The broader financial market appears relatively more confident that a debt-ceiling agreement can be reached by June 1.