(Bloomberg) -- Treasury Watch, a daily snapshot of selected content on the U.S. Treasury, government finance, policy and politics.
What to Watch
- Today: Treasury set to offer 3-month, 6-month, 52-week bills; 3-year and 10-year notes; 30-year bond.
Recommended Reading
President Donald Trump sided with Democrats on adding a three-month extension of the U.S. debt limit and government spending to a hurricane-relief bill over the arguments of fellow Republicans, who pressed for a longer debt extension.
- Trump, after meeting with congressional leaders Wednesday at the White House, told reporters on Air Force One that the deal with Democrats would be "very good."
Anxious bond traders can finally breathe a sigh of relief.
- Long-term Treasuries slumped with December bills, while securities with October maturities soared after President Donald Trump sided with Democrats on a plan to extend the U.S. debt limit and keep the government running through Dec. 15.
Treasury bills are suggesting that the agreement between the Trump Administration and congressional leaders on an extension of the U.S. debt limit doesn't signal the end of the political drama.
- While rates on bills maturing around the previous deadline outlined by Treasury Secretary Steven Mnuchin have plunged, they're surging on securities coming due around the Dec. 15 date that Democratic leaders said they've agreed to with the administration.
Treasury Financing
As of Sept. 5, the Treasury reported a total operating balance of $40.456 billion and $19.844 trillion in outstanding public debt. The current debt limit is about $19.8 trillion.
Through July, the U.S. paid $404.3 billion in interest expense for the fiscal year ending Sept. 30. The average interest rate on interest-bearing debt was 2.279 percent in July 2017 compared to 2.259 percent a year earlier.
The Federal Reserve Bank of Dallas estimates that the market value of U.S. debt was about $500 billion larger than the par value at $20.3 trillion in July. The Treasury has raised $410 billion in new cash this fiscal year through the sale on bills, notes and bonds.
Also see:
Complete Treasury Auction Schedule
Monthly Statement of the Public Debt for July
For Treasury Secretary Mnuchin news and profile, click HERE
For U.S. Treasury news, click HERE
For U.S. Treasury website, click HERE
For Treasury and Money Markets Monitor, click HERE
To contact the reporter on this story: Jordan Yadoo in Washington at jyadoo@bloomberg.net.
To contact the editor responsible for this story: Kristy Scheuble at kmckeaney@bloomberg.net.
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