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If the US govt defaults, it will default on the shortest end of the curve, because those are the payments that are required the soonest. This is why those rates
by steven2012 13y ago
If the US govt defaults, it will default on the shortest end of the curve, because those are the payments that are required the soonest. This is why those rates have "spiked", even though 27 bps is miniscule.
- ballard 13y agoWould the severity of a default effect the value of currency very inelastically because any weakness signals a tip of an iceberg?