Chart: Looking Back At Past Debt Ceiling Crises
By Global X Funds • on April 7, 2017, http://www.valuewalk.com/2017/04/cha...eiling-crises/
we looked at the performance of various asset classes for the one month period preceding the last two contentious debt ceiling negotiations in 2011 and 2013.
The bond and currency markets showed more consistent reactions in both debt ceiling crises. Treasury and corporate bonds with maturities longer than one year rallied as investors fled to lower risk asset classes and believed that longer term obligations would still be met. The dollar mildly declined in both instances. Not pictured in the chart above (due to scale) are shorter term treasuries, like the 3-month treasury bill which saw yields skyrocket up 800% in 2011 and 900% in 2013 as fears over missed repayments soared.
US Equities: S&P 500
Emerging Market Equities: MSCI Emerging Markets Index
Asset Class: 10 Year US Treasuries
Bloomberg US Treasury Bond Index 10+ Year
The Bloomberg US Treasury Bond Index 10+ Year is a rules-based, market-value weighted index engineered to measure the performance and characteristics of fixed rate coupon U.S. Treasuries which have a maturity greater than 10 years.
US Aggregate Bond Index
Bloomberg Barclays US Aggregate Total Return Value Unhedged Index
The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.