What does it take for international markets to panic? With the debt ceiling due to be hit in a little more than a week, the short answer is that the “full faith and credit of the United States” is still worth quite a lot. We’re only starting to see the first signs of a panic as an auction of 1-month TBills sold at a net rate of 0.355%. If that doesn’t impress you, it’s worth noting that it was one third that a week ago.
Stocks started falling, too, with the DJIA losing just over a percent.
Allright, it’s not much. Gold isn’t budging above $1330 or so per ounce and benchmark 10yr TBills are still comfy at 2.64%. These are probably the best standards to watch for signs of panic as the stalemate goes nowhere.