US T-bill rates fall after tentative US debt deal

NEW YORK: Interest rates on US Treasury bills due through year-end slipped into negative territory on Tuesday as investor demand returned in the wake of a tentative deal on a two-year US budget deal and an extension of the federal debt ceiling.

Investors had worried repayments of T-bills that mature in the coming weeks would be delayed if government borrowing capacity was not increased.

Interest rates on T-bills due Nov. 5 were quoted at -0.005 to 0.005 percent, down 5 basis points from late Monday, while those due Nov. 12 were quoted at -0.0100 to 0.005 percent, a little over 5 basis points lower, according to Tradeweb.