US Treasury Postpones 2-Year Note Auction on Debt-Ceiling Risks

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.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell