TREASURIES-Feb T-bill rates stay elevated even as U.S. lifts debt limit
TOKYO Oct 17 (Reuters) - Yields on U.S. Treasury bills due in February were steady in Asian trade on Thursday, reflecting market unease that an 11th hour deal to break a U.S. fiscal impasse had merely pushed back the prospect of another bruising fight in Washington.
The deal pulled the world's largest economy from the brink of a historic debt default as it funds the U.S. government until Jan. 15 and raises the debt limit through to Feb. 7.
But Democrats and Republicans need to resolve the fundamental issues of spending and deficits that divide them to prevent the possibility of another showdown and renewed blow to market confidence early next year.
The uneasy political truce in Washington is keeping yields on U.S. February T-bills high.
Rates on Treasury bills maturing on Feb. 13 were quoted at 0.096 percent during Thursday's Asian trade. They hit a high of 0.14 percent on Wednesday, the highest for the short-term instrument since it was issued in August, and up from 0.05 percent on Friday.
By contrast, yields on bills due on Oct. 24 dipped a touch to 0.2078 percent. They climbed as high as 0.72 percent earlier on Wednesday.
The benchmark 10-year U.S. Treasury yield held steady at 2.6542 percent on Thursday, while U.S. Treasury futures added 5-1/2 ticks.
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