Yields on Treasury bills maturing in early June drop more than a full percentage point since Wednesday on debt-ceiling hopes

Growing optimism that a debt-ceiling deal can be reached has led to a dramatic plunge in the rates of Treasury bills maturing between June 1-8. The yield on the 3-month bill issued on March 2 and maturing on June 1 was 5.586% as of 11 a.m. Eastern time Friday, down 166.8 basis points from Wednesday’s closing level of 7.254%, according to Tradeweb. The rate on the 1-month T-bill, issued on May 9 and maturing on June 6, was at 5.649%, down 139.2 basis points from 7.041% two days ago. And the yield on the 3-month bill issued March 9 and maturing on June 8 was at 6.076%, down 123.1 basis points from 7.307% on Wednesday. President Joe Biden’s team and House Speaker Kevin McCarthy’s deputies were said to be nearing a deal that would raise the U.S. debt ceiling and avoid a market-shaking default, though getting it through Congress quickly may be tricky. All three major U.S. stock indexes, along with most Treasury yields, were higher in late morning trading.