Queues build up at the short end

• The Financial Times – Short-term US funding highly restricted Conditions in the short-term US funding market remained highly constrained on Monday, with a key financing rate for Treasuries climbing to its highest level in 11 months, as investors awaited key votes on raising the federal debt ceiling. Although a deal to raise the $14,300bn debt ceiling was set to pass later in the US day, signs of relief in the short-term funding markets were hamstrung by settlement of last week’s $99bn in new Treasury paper, which pushed more debt into the market.Think Tank

Investors see a high probability of inventory shortages soon.