On April 18, the U.S. government issued a 3-month treasury bill on Monday with the highest bid yield since 2001 at 5.08%.
In comparison, the current U.S. 2-year yield is 4.20%.
This result is mainly affected by investors’ concerns about the approaching US debt ceiling.
Many people believe that if the debt ceiling agreement cannot be reached in time, the treasury bills of this period will be more prone to technical defaults. In addition, the market’s expectation that the Fed will raise interest rates in the short term has also had an impact on the yield of treasury bills.