The U.S. Treasury Department said it will postpone the two-year note auction previously scheduled for Tuesday, as an impasse over the debt limit constrains the nation’s borrowing.
“Due to debt ceiling constraints, there is a risk that Treasury would not be able to settle the two-year note” on Nov. 2, the Treasury said Thursday in an e-mailed statement.
The five-year note auction, scheduled to take place on Oct. 28, and the seven-year note auction, scheduled to take place on Oct. 29, will proceed as planned. Both sales will settle on Nov. 2, the department said.
U.S. Treasury Secretary Jacob J. Lew on Wednesday reiterated that the government on Nov. 3 will exhaust the tools it’s using to stay under the cap. He urged Congress to act now to increase the U.S. debt limit, calling it irresponsible for lawmakers to use political brinkmanship that could jeopardize the government’s record of honoring its obligations.