The United States Secretary of the Treasury, Janet Yellen, offered some comfort to the market late on Tuesday after it announced an extension of the deadline for a possible default of the US government until December 15 from December 3.
Term extended would give Congress more time to raise the federal debt ceiling.
Yellen told lawmakers that now estimates that the United States will reach its debt limit on December 15, nearly two weeks after its initial forecast on December 3.
In reaction to Yellen’s statement, 10-year US Treasury yields extended their gains post-retail and reached the highest levels in three weeks at 1,644%.
Amid mounting inflationary pressures and expectations of a Fed rate hike, yields on US debt are once again looking attractive, while the US dollar remains close to a 16-month high against its main competitors.
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