While a scare-mongering news media continues to assault common sense with ceaseless blather about all the terrible things that are going to happen if Democrats and Republicans don’t come to terms by midnight Monday, bond traders have been partying up a storm. Who are you gonna believe? If the steep uptrend in the September T-Bond is any indication of what’s coming, the deadline is going to be the biggest non-event since Kohoutek streaked across the sky. Not that Brian Williams et al. will have noticed. T-Bonds hardly look worried and could continue to as high as 130^00 over the near-term, according to my technical runes. Not exactly a harbinger of a default disaster.
