US Bonds Fall on Hopeful Fiscal Agreement

Interest rates on U.S. Treasury bills fell on Tuesday on reduced jitters over a possible U.S. default as there were hints of a possible fiscal agreement that would reopen the government after it was partially shut for the first time in 17 years.

Treasury rates on T-bill issues due in October to November fell to their lowest level in a week, although they remained at elevated levels compared with three weeks ago.

That debt was seen as most vulnerable if the White House and Congress failed to raise the statutory $16.7 trillion borrowing limit which is on track to be exhausted on Thursday.

The T-bill issue due on November 7 last traded at 0.2025 percent, down 5 basis points from late on Friday.

The U.S. bond market was closed on Monday due to the Columbus Day holiday.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza