U.S. Treasury resumes "slugs" issuance after debt-ceiling halt

WASHINGTON Tue Feb 5, 2013 9:13am EST

WASHINGTON (Reuters) - The U.S. Treasury Department said on Tuesday it was resuming issuance of State and Local Government Series securities, or "slugs", which was halted to preserve borrowing capacity as the nation neared the legal limit on its debt.

The Treasury said issuance would resume at noon.

Slugs are special low-interest Treasury securities offered to state and local governments to temporarily invest proceeds from municipal bond sales.

(Reporting by Timothy Ahmann; Editing by James Dalgleish)

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