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Investors Holding T-Bills Due Tomorrow Get Nervous

Rates on shortest bills surge as Fitch places U.S. rating on negative watch.

By Daniel Kruger and John Detrixhe, Bloomberg | Updated on October 16, 2013

Investors holding $120 billion of Treasury bills coming due tomorrow are increasingly worried that they won’t get paid.

Rates on the bills, maturing the same day that Treasury Secretary Jacob J. Lew has said the U.S. will exhaust its borrowing capacity, have surged 16 basis points, or 0.16 percentage point, to 0.36 percent this week, according to Bloomberg Bond Trader prices. The securities, issued a year earlier, traded at a rate of negative 0.01 percent as recently as Sept. 26.

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