NEW YORK, Feb 13 (Reuters) - The U.S. Treasury Department on Tuesday sold $50 billion of one-month debt at a lower interest rate following last week’s federal budget agreement that included a suspension of the debt ceiling into March 2019.
The Treasury sold the latest one-month bill issue at an interest rate of 1.360 percent, which was below the “high” rate of 1.480 percent at last week’s one-month T-bill sale, Treasury data showed.
The ratio of bids to the amount of one-month bills offered was 3.27, up from 3.16 last week.
Last week, Congress and President Donald Trump approved a two-year deal that will raise military and domestic spending by almost $300 billion. The expenditure increase will be financed with more federal borrowing.
Prior to the budget agreement, the Treasury had been reducing its borrowing as it approached its statutory debt limit of $19.9 trillion.
It sold $15 billion in one-month T-bills a week ago.
Investors were avoiding T-bills that mature in early March on worries the government might run out of cash at that time.
The Treasury also sold $50 billion in 55-day cash management bills on Tuesday at an interest rate of 1.560 percent. (Reporting by Richard Leong Editing by Chizu Nomiyama)