Scale of T-Bill Drought Hinges on Biden Rescue, Income-Tax Haul
- Return of debt limit would require Treasury to slash cash pile
- Short-term pressure spills over, pushing Libor to record low
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Interest rates in the U.S. dollar-funding markets are pinned right near zero -- and the pressure that’s holding them down may only intensify because of tax season and President Joe Biden’s rescue plan.
The shortage of Treasury bills is expected to worsen even before the debt ceiling returns in July, which will force the federal government to continue cutting its cash pile by hundreds of billions of dollars.