US T-Bills No Longer Considered Risk Free By Chicago Mercantile Exchange

T-Bills No Longer Considered Risk Free By Chicago Mercantile Exchange (Business Insider, July 25, 2011):

CME Group announced Monday that as part of a “normal review of market volatility,” it has determined that T-Bills should no longer be treated as risk-free when used as collateral.

Haircuts on T-Bills will rise from 0.0 percent to 0.5 percent on Thursday, according to the statement. T-Notes/T-Bond haircuts will not increase by 1 percentage point across the board.

View the full statement here:

[via Zach Goldfarb]

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