📝 Treasuries Tend to Rally Into U.S. Government Shutdowns: Scotiabank

The FOMC is likely nervous going into developments like the

debt ceiling with an x-date of sometime in July or August. The general pattern is that whenever the US courts the risk of government shutdowns that may (like in 2013) be related to debt ceiling spats or other disagreements, Treasuries often rally and stocks often weaken in the lead-up to the developments (chart 2)

- Scotiabank