US monetary reserves are at their lowest level in six years
Prices of US treasury bills due soon rose, with trading resuming after the Memorial Day holiday in the United States, and after an initial agreement on the debt ceiling eased fears of default.
The yield on US Treasury bills due June 6, the day after the US is expected to run out of cash, fell 13 basis points to 5.16% in Asian trade, according to Bloomberg data.
The yield on bills maturing on June 15 decreased by 26 basis points.
Analysts expect the Treasury Department to soon replenish its cash balance by selling more than $1 trillion in bonds through the end of the third quarter.
US cash reserves stand at $39 billion, the lowest level in six years.
For his part, a portfolio manager at Capital Investments, Raed Al-Momani, said that the yield rates on US bonds rose during the past two weeks, while the market is discussing the reason, is it the result of the debt ceiling agreement or the improvement of economic indicators, while the debt ceiling agreement affects the short term more than the long term. .
Al-Momani added, in an interview with Al-Arabiya, today, Tuesday, that the markets are currently expecting to raise US interest rates in the months of June and July, respectively, due to the improvement in economic data, whether from inflation or individual spending, in addition to other indicators.
He explained that the returns on two-year bonds rose by the equivalent of 50 basis points, and the 10-year bonds rose by the equivalent of 30 points.
2023-05-30 09:46:00
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