U.S. Treasury bill market poised for high volatility

U.S. treasury says that it will suspend sales of state/local government securities as of 12:00-noon eastern time on March 15 due to debt limit expiration.

Quotes from U.S. Treasury Secretary Mnuchin (via Reuters)

• Treasury will take other extraordinary measures to prevent a U.S. default
• Honoring full faith and credit of U.S. debt is a "critical commitment", calls on congress to raise debt limit at first opportunity

However, the dislocations in money markets are expected to reverse quickly as the Treasury adds borrowing capacity after March 15 by using measures such as suspending contributions to government accounts and funds, halting the issuance of securities used by municipalities to help refund older debt and sales of saving bonds, according to Bloomberg.