U.S. Debt had Higher Yield than U.S. Corporate Debt at One Point Last Week

Reuters reports:

Other than hedging and duration demand, some analysts
attributed the unprecedented yield discounts of long-dated
swaps over Treasuries reflected traders' anticipation of the
vast supply of U.S. government debt supply to hit in the coming
months.

"Over the past 10 years or so, it is an inescapable
observation that the swap spread has correlated very, very
closely to the federal budget deficit," Calyon's fixed income
strategists wrote in a research report.

Imagine that.