Treasury Yields Reach Lowest Levels This Year as Deadline Nears
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Treasuries rallied, driving 10- and 30-year yields to the lowest levels this year, on speculation lawmakers will break a deadlock over raising the nation’s debt limit and avoid defaulting on the nation’s $9.34 trillion of marketable debt outstanding.
Returns on U.S. government debt have recouped all of their June losses as the government said today U.S. gross domestic product grew more slowly than forecast in the second quarter. At the same time, rates on bills maturing just after the Aug. 2 debt-ceiling deadline rose for a seventh straight day. The U.S. would delay quarterly auctions of U.S. notes and bonds if there’s no extension of the cap before next week.