U.S. Debt-Ceiling Agita Is Messing With Shortest-Maturity Debt
- Treasury’s 4-week bill sale draws highest yield since January
- Secretary Yellen said government could breach limit in October
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Investors are beginning to demand more yield to hold the U.S. government’s shortest-maturity debt, perceived to be at risk of delayed repayment if the debt ceiling isn’t suspended in the next several weeks.
The Treasury Department on Thursday sold $20 billion of four-week bills at 0.06%. That’s 3.5 basis points higher than the previous week’s result and the highest award rate since January. It also sold $30 billion of eight-week bills at 0.065%.