: 1-month T-bill rate tumbles to lowest level since mid-October on rising debt-ceiling concerns

Traders piled into the 1-month T-bill on growing concerns about the debt ceiling on Thursday. The 1-month T-bill rate plummeted more than 40 basis points, to around 3.3%, or the lowest level since mid-October during New York afternoon trading, according to Tradeweb. Via phone, Tom di Galoma, managing director and co-head of global rates trading at BTIG LLC, said the move reflects traders’ view that “the debt-ceiling crisis has been elevated.” “While there are still a lot of negotiations that need to go on, a lot of firms that previously thought the government could pay its bills through August, are now thinking that the government can pay its bills through June,” he said.

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