Deposit Funding Compass Week of August 2, 2023

The US Treasury boosted the size of its quarterly sale of longer-term debt for the first time in over 2 1/2 years, testing dealers’ appetites amid an increase in government borrowing needs so alarming it spurred Fitch Ratings to cut the US sovereign rating from AAA. Treasuries dropped in wake of the release, with benchmark 10-year yields rising to as high as 4.12%, a gain of around 9 basis points relative to Tuesday’s close.

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