The US Capitol dome through a window in the Cannon House Office Building in Washington, DC, US, on Tuesday, May 30, 2023.
Photographer: Sarah Silbiger/BloombergTreasury Still Needs to Navigate Around Debt-Ceiling Risks Even as Investor Concerns Ebb
Government is adjusting its bill supply to manage its obligations until a resolution is passed
Investor concerns about the debt ceiling have ebbed now that lawmakers in Washington are pushing toward the finish line an in-principle deal struck by President Joe Biden and House Speaker Kevin McCarthy, but until everything is fully implemented the Treasury Department is maneuvering on the assumption that the government could still exhaust its borrowing authority.
Yields on Treasury bills maturing in the first half of June fell after a deal to avoid breaching the $31.4 trillion debt ceiling eased concern over the prospect of a calamitous US default. Bills due June 6 yielded 5.2%, down from more than 7% at one point last week. At the same time, the Treasury said on Tuesday it will continue paying down its stock of bills as it navigates around debt-ceiling issues ahead of legislation being finalized.