Treasuries are normally viewed as the safest investments. But now, one-month Treasury bills due in June are being seen in the markets as potential trouble spots. Their yields have shot up over the last week or two, pushing them higher than the yields for two- and three-month bills. That’s not typical.
In two or three months, the logic goes, the debt ceiling crisis will be behind us. In the meantime, one-month bills carry unusual risks. But some investors, like William H. Gross, who was known as the “bond king” when he headed Pimco, say a default will be averted and, at current prices, one-month Treasury bills are bargains.
They may well be, but that’s only because they are deemed risky. Yet Treasuries are supposed to be risk-free assets.
https://www.nytimes.com/2023/05/12/busi ... costs.html