View: Credit Markets Signal Bigger Fear Of Treasury Default Than In 2011...

Credit Markets Signal Bigger Fear Of Treasury Default Than In 2011...

The cost of 1Y protection has surged higher than the 5Y protection - something we have only seen in the summer of 2011. However, this time it's different as the inversion is even greater than in 2011 - although not the most liquid instrument in the world - implying a greater chance (albeit a small probability) of a postponed payment in US Treasuries.

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