During the European crisis, we saw sovereign debt yields rising way above their domestic banking sector's yields as investors feared systemic crisis and technical flows dominated the price action amid aggressive hedging. Now, with Washington looking increasingly likely to crash upon the shores of a US Treasury technical default, for the first time on record the yield on short-term Treasury-Bills is above the yield on US interbank loans. T-Bill yields (the US government's "risk") have surpassed short-term LIBOR (US Banks' "Risk")... must be a good reason to BTFATH...

The yield on Treasury Blls (US Government risk) is above that of LIBOR (US bank risk)

(of course there are many technical issues impacting this spread but the fact that this is the first time on record is critical for investors to recognize that the US equity market's nonchalance is misplaced)

and the 1m1y inversion continues to invert faster and faster... as our suggested trade pushes further into the money