Short-term credit markets feel effects of debt impasse

Money market funds that invest in ultra-safe securities, such as Treasurys, have seen outflows of about $37.5 billion over the past week. It's the largest weekly drop so far this year. Meanwhile, borrowers in the repurchase market are starting to demand higher yields. Concerns are mounting that if the credit rating of the U.S. is downgraded, the value of Treasurys used as collateral in the repo market could respond in kind.

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