The US debt must be refinanced at 5% interest rates in less than two years, up from 0% just 15 months ago. Treasury Department auctions $15 billion worth of one-day cash management bills.

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via CNN:

Desperate times are calling for desperate measures at the Treasury Department. For the first time since 2007, the department is set to auction $15 billion worth of one-day cash management bills on Friday that will be issued on June 5

This comes as the Treasury’s cash balances hover around $37 billion, the lowest level since 2017. Since the debt ceiling was initially breached in January, the Treasury hasn’t been able to borrow more money to pay its bills. If lawmakers don’t raise the debt ceiling by June 5, the Treasury is poised to run out of funds to meet its full obligations, Treasury Secretary Janet Yellen warned.

Congress appears to be on track to avoid that scenario. The House of Representatives passed the debt deal House Speaker Kevin McCarthy cut with President Joe Biden on Wednesday. Now its fate rests in the hands of the Senate and Biden, who vowed to quickly sign it into law.

Cash management bills mature in a relatively short time frame, ranging from a few days to a year, according to the Treasury. They’re used to help manage the Treasury’s short-term financing needs.

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