Wells Fargo's Schumacher: UST Yields to Fall 'Dramatically If Debt-Limit Deal Fails

The video discusses the recent concerns about the US debt ceiling and its impact on the Treasury Bill market. It highlights the aversion to June, July, and August T-Bills due to increased yields and potential risks. The discussion extends to the broader Treasury market, suggesting a risk-off event if the debt ceiling issue persists. The video also explores global risk-off events, emphasizing the US market's depth and liquidity as a safe haven for investors.

What event on the 18th heightened concerns about the debt ceiling?

• The stock market crashed.

• A major bank collapsed.

• The tax date occurred.

• A new tax policy was introduced.

Why are investors avoiding June, July, and August Treasury bills?

• They are considered riskier due to debt ceiling concerns.

• They are not available for purchase.

• They offer lower yields compared to May.

• They have higher transaction fees.

What might happen to treasury yields if the debt ceiling issue is not resolved?

• Yields might increase significantly.

• Yields might remain stable.

• Yields might become unpredictable.

• Yields might decrease dramatically.

What is a 'risk-off' event in the context of the Treasury market?

• Investors seek higher-risk assets.

• Investors move away from riskier assets.

• Investors ignore market fluctuations.

• Investors focus on short-term gains.

Why is it challenging to move away from US Treasuries during global risk-off events?

• US Treasuries are the only government bonds available.

• There are no other markets as deep and liquid.

• Other markets are more volatile.

• US Treasuries offer the highest returns.