Transcripts for CNN The Situation Room 20131008 21:30:00 : v

CNN The Situation Room October 8, 2013 21:30:00

seen equity markets, but treasury bond bills, short-term bills that are expiring right by -- the day after the government closed, the ones that were expiring right around october 17th, then the ones that were expiring in november 7th, there was a risk premium, they're at their highest rates since 2009. so it's really modest, doesn't have ripple effects for the economy yet but the fact that that's already happening, investors are already having to raise rates on the very minute short-term treasuries means that that's a precursor of what could happen, that we could get a spike in rates and if the uncertainty is not resolved, it could linger. and the global pressure here is real, because the biggest investors of course in the treasury bond market happen to be foreign investors and they will pay the greatest price but it is also global in scope because we are what everybody else prices all their assets off of. the treasury bond is the gold standard or it is considered that still. not sure why. better still be. we need it that way. >> thanks very much.

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