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Pro: Debt Ceiling Political, Not Serious Problem

Although the deadline for the U.S. debt ceiling draws near, investors don't seem terribly worried, a market pro notes.

President Obama on Monday said default is not an option. As a result, Treasurys got a safety bid today, despite the President and Congressional leaders taking this debt ceiling debate to the wire. But Jeff Kilburg of TreasuryCurve is still betting on the two parties coming together.

"I think despite the fact we're hearing a lot of noise and a lot of drama currently out of Washington and for the rest of July, I think the market has indicated that we're going to have full faith in the fact that we can service this U.S. debt moving forward, despite the parties' situation," Kilburg said.

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Global markets are in trouble, but Kilburg said nobody's worried about the U.S. not being able to meet its debts. The bond market suggests Europe's debt troubles are more important than the U.S.'s debt ceiling, he added. After all, a lot more work needs to be done to fix Europe's debt situation, he explained. Treasurys will continue to attract buyers.

After a strong equity market a few weeks ago, the U.S. 10-Year Yield fell below 3 percent on Monday. So which market is right?

Kilburg said the bond market is getting it right. In April, the 10-Year was around 3.75 percent and that was the precursor to this soft patch, Kilburg explained. He thinks the bond market is yet again a good tell.

So when it comes to the bond market, what's your best indicator?

Kilburg said bond traders are watching interest reserves. The Federal Reserve currently owns a trillion and a half in Treasurys and once that number comes down dramatically, Kilburg thinks rates could move.

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Trader disclosure: On July 11, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Patty Edwards Edwards is long (XLK). Patty Edwards is long (PM). Steve Weiss owns (VZ), (TBT), (DRR), (UUP), (QCOM), (NS), (ETP), (MSFT), (MRK), (JPM), (AKAM), (HBAN), (CMA), (KEY), (WFT) and (MDRX). Steve Weiss is short (X). Steve Weiss is short (FLR). Jon Najarian is long (CAG) call spreads. Jon Najarian is long (CIGX) call spreads. Jon Najarian is long (UA) call spreads. Jon Najarian is long (EUO) call spreads.

PATTY EDWARDS
Edwards Owns (AAPL) For Clients
Edwards Owns (AMZN) For Clients
Edwards Owns (SYT) For Clients
Edwards Owns (MON) For Clients
Edwards Owns (POT) For Clients
Edwards Owns (WFM) For Clients
Edwards Owns (MDC) For Clients
Edwards Owns (PM) For Clients
Edwards Owns (XOM) For Clients
Edwards Owns (XLB) For Clients
Edwards is long S&P500 For Clients
Edwards is long Nasdaq 100 For Clients
Edwards is long Russell 200 For Clients
Edwards Owns GOLD For Clients
Edwards Owns SILVER For Clients

BRIAN KELLY
Accounts Managed By Brian Kelly Capital Own (.AUX)
Accounts Managed By Brian Kelly Capital Own (NZDUSD)
Accounts Managed By Brian Kelly Capital Own (.MON)
Accounts Managed By Brian Kelly Capital Own (CLF)
Accounts Managed By Brian Kelly Capital Own (INTC)
Accounts Managed By Brian Kelly Capital Own (QCOM)
Accounts Managed By Brian Kelly Capital Own (RTH)
Accounts Managed By Brian Kelly Capital Own (SLV)
Accounts Managed By Brian Kelly Capital Own (TBT)
Accounts Managed By Brian Kelly Capital Are Short the British Pound

JIM O’NEILL
** Pending

JEFF KILBURG
** No disclosures

CNBC.com with wires.