/BILLS: Jefferies economists noted that.....>

US VIEW: /BILLS: Jefferies economists noted that "we have heard even less about

progress on addressing the debt ceiling, than we have about funding the

government and avoiding a shutdown. Although Congress has a chance to wrap-in a

debt ceiling solution with the legislation that extends government funding in

late-January, past precedent would suggest that they will ignore the debt

ceiling until it applies pressure on the market in late March."

- They added that "in past debt ceiling squeezes, Treasury bills that mature

around the anticipated "drop dead date" tend to be avoided by investors and the

bill curve tends to "kink" around those bills. As of now, the "kink" has yet to

develop but we expect that it will, as late March approaches".