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The reason that there is stability in treasuries is this: nobody thinks the people in charge are stupid enough to let the US default. That will change if the tea party has its way. Nobody knows what will happen then. We can be pretty sure that yields will jump, though, because investors will likely no longer be willing to assume that there isn't default risk in treasuries. This will immediately reduce the value of a whole bunch of existing bonds and increase the cost of doing business for a whole lot of people.
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