Long-dated Treasuries unbowed by debt tensions Traders of Treasuries had some respite on Monday when the cash market was closed for Columbus Day. Disappointment that Washington had not secured a budget deal over the weekend was otherwise likely to have delivered a further inversion in the yield curve, pushing one-month T-bill prices lower on worries about market dislocation should the debt ceiling not be raised. But equities were in action and index futures by the middle of the global session showed the S&P 500 losing a chunk of last week's late gains. Tension builds again. The volatility in stocks and T-bills is not being replicated in longer term US paper, however. The US 10-year yield has been stuck between 2.6 and 2.7 per cent for the past three weeks, even as fears about US creditworthiness - as measured by higher CDS spreads - have been building. Indeed, the MOVE Index, which measures volatility expectations for two-, five-, 10- and 30-year notes is 77.1, near its lowest since May and notably below the 10-year average of 95.2. Investors seem to be betting that any debt ceiling breach will not infect longer maturities and indeed may bolster their haven status. Meanwhile, the farrago's damping economic impact will extend the Fed's bond-buying programme.