NEW YORK Feb 11 The interest rate on U.S.
one-month Treasury bills fell to their lowest level in over a
week on Tuesday after news that House of Representatives
Republicans agreed to advance a "clean" bill on the raising the
debt limit before the government is expected to run out of cash.
The drop in the one-month T-bill rate came shortly before
the Treasury Department sells $8 billion worth of one-month debt
supply at 11:30 a.m. (1630 GMT).
House Speaker John Boehner told reporters on Tuesday
Republicans plan to advance a "clean" debt limit bill to the
House floor on Wednesday. House Democratic leaders suggested
there will be "broad support" for such a bill.
On the open market, the one-month T-bill rate was
quoted at 0.04 percent in early trading, down 3 basis points
from late on Monday, according to Reuters data.
In "when-issued" activity, traders expected the Treasury to
pay investors and dealers 0.05 percent on the upcoming one-month
bill supply due March 13. Last week, it sold $8
billion of one-month bills at an interest rate of 0.13 percent,
which was the highest level since Oct. 16.