The prevailing wisdom says this little dip is, well, a little dip. It wasn't due to fundamentals, like a sudden decrease in corporate revenue or a shortage of manufacturing supplies. Rather, it was psychology and politics. All the Washington fuss unnerved some Wall Street players, making them think that there was a possibility that short-term debt wouldn't pay up on time.
Amplifying that move in the debt markets, the price for insurance against a default on U.S. short term debt also rose. Indeed, it inverted there, too, with the cost of insuring one-year debt higher than the cost of insuring five-year debt.
Short-term debt is crucial to money market funds and other types of funds that most people think of as stable and conservative investments. The downside of those funds not performing to expectations is severe, so you saw outfits like Fidelity dump the debt.
(Read more: Is your money market safe?)
"They can't afford that bad publicity," said Andrew Burkly of Oppenheimer during an interview on CNBC's "Squawk on the Street".
Once the shutdown-debt ceiling-partisan stalemate ends, the thinking goes, demand for short-term debt will return.
Then again, if the political wrangling continues or the current soft economy gets softer, the blip could get bigger.