Yields on short-term Treasuries fell Tuesday as fears of a US government debt default receded following the weekend’s bipartisan debt ceiling deal that omits a famous crypto tax loophole.
At 05:33 ET, the yield on the 10-year Treasury dropped 10 basis points to 3.72%, while yields on the two-year Treasury dropped seven basis points to 4.514%.
Raising Debt Ceiling Would Affect Bank Liquidity, Analysts Warn
This reaction came after President Joe Biden and House Speaker Kevin McCarthy agreed in principle to lift the US debt ceiling amid fears the government would technically default in early June.
Congress must pass any proposed changes to the debt limit. The House Rules Committee will review the new agreement today.
Any delays in the deal could threaten the US ability to stave off a technical default by June 5. A default would increase the US Treasury’s cost of…
