Yield Curve Inverts, Swap Spreads Spike Signal Panic As Debt-Ceiling Looms

US swap spreads (indicative of bank counterparty/liquidity risks) is surging once again, to its highest since June 2012 signaling a growing concern at the looming US debt ceiling deadline.
With about five weeks until the expiration of the U. S. debt-ceiling suspension pact, Bloomberg notes, swap spreads are suggesting traders are getting nervous that any hiccup in efforts to remove the burden could trigger a shortage on short-term government securities.

This post was published at Zero Hedge on Feb 6, 2017.