U.S. Treasury seeks dealer comments on debt limit restrictions

The U.S. Treasury Department on Friday asked its primary bond dealers for their views on how a potential reinstatement of the federal debt limit on July 31 will affect the Treasury debt market and potential supply of bills over the next three months.

In the dealer questionnaire for the May quarterly debt refunding, the Treasury also said it was also seeking comments on the demand and trading performance of the 20-year Treasury bond a year after it was reintroduced.

If Congress fails to renew a debt limit suspension before July 31, the Treasury would have to resort to extraordinary cash management measures to continue borrowing.