The Debt Ceiling and the Fed

The move index, which is the index that measures fixed income volatility, it's trading around 125 right now or 1.25. If you look at the period in March when we had the beginnings of this banking crisis, that move index spiked up to 200. So let's assume that we feel that it's more likely than not that yields on newly issued debt would be higher rather than lower. Okay what does that do? Well, that means that now we have a new 10 year bond that's yielding X basis points more than old 10 year bonds. And the other thing that will happen is that volatility will be a lot higher because people will just not know what can happen.