Treasuries Advance as Lawmakers Reach Tentative Fiscal Agreement

Rates on Treasury bills tumbled and yields on government notes and bonds fell as lawmakers reached a tentative agreement to raise the nation’s borrowing capacity and remove the risk of default.

Rates on $120 billion of bills maturing tomorrow, when Treasury Secretary Jacob J. Lew has said the U.S. will exhaust measures being used to keep the government funded, dropped to 0.035 percent after touching 0.36 percent. Optimism an agreement is at hand bolstered demand at today’s auctions of $68 billion of four- and 52-week bills and of 189-day cash management securities in what could have been the Treasury’s last opportunity to bring in new cash under the debt limit.