BlackRock says (BLK.N) it's been buying Treasuries in anticipation of an economic slowdown and a protracted debt ceiling fight.
2/ RAINY DAY DEFAULT PROTECTIONCredit default swaps (CDS), which work like insurance against a debt default, are seeing strong demand.
"If debt ceiling concerns grow we think markets will price in more Fed rate cut expectations, which means 5-year yields would fall," said Miyairi.
5/ ALL THAT GLITTERSDeutsche Bank strategist Robin Winkler says a good hedge may be buying gold against the dollar, as it has the tightest relationship with newsflow around the debt ceiling.
In August 2011, as a debt ceiling crisis prompted a U.S. credit rating downgrade, gold rose 11% that month alone.