NEW YORK Jan 24 U.S. Treasury bill rates jumped
on Friday on concerns that Washington won't raise the
government's $16.7 trillion statutory borrowing limit in time
before it is expected to be exhausted by early March.
In October, Congress and the White House suspended the
borrowing cap until Feb. 7. If the debt ceiling isn't raised by
then, Treasury will be able to juggle money between government
accounts for a few weeks to keep just under the new limit.
On Friday, Patty Murray, a top Democrat senator, said her
party will not negotiate with Republicans to raise the debt
ceiling in exchange for concessions.
As risk grew that repayment on T-bill issues due in late
February to mid-March might be delayed without a debt deal,
investors reduced their holdings of these issues. This
catapulted the interest rates on these ultra-short-dated debt to
their highest since October during the previous debt ceiling
The interest rate on T-bills due March 6 traded
as high as 0.10 percent before moving down to 0.08 percent. It
ended at 0.03 percent on Thursday.