Fidelity has sold all of its short term T-Bills

[Gothmog]

54. The title of this thread is the same as the article quoted.

The issue that I was trying to make is that the markets are reacting to the GOP statements about letting the government default on its debts. The article's title is accurate and shows that the markets are reacting to the increased risks due to the stupidity of the tea party and the GOP

Prior said that Fidelity no longer holds any U.S. debt that comes due in late October or early November, the window considered by many investors to be the most exposed if the government runs out of money and defaults on its obligations.

"We expect Congress will take the steps necessary to avoid default, but in our position as money market managers we have to take precautionary measures," Prior said.,,,,

Fidelity's actions underscore what traders have noticed the last week. Investors have dumped U.S. government debt that comes due this month, with the heaviest selling occurring in one-month Treasury bills. The yield on the one-month T-bill jumped to 0.3% Tuesday, its highest level since the 2008 financial crisis. The yield was nearly zero at the beginning of the month.

Money market mutual fund managers don't want to be caught holding U.S. government debt that comes due around the time the government hits the debt ceiling. They fear that the government could be unable to pay back bond holders, said Gabriel Mann at the Royal Bank of Scotland Group.

"Investors are buying protection," Mann said.

Read more from Journal Sentinel: http://www.jsonline.com/business/fidelity-sells-short-term-t-bills-b99117195z1-227151731.html?ipad=y#ixzz2hKNExhEp