Dwindling cash reserves were reportedly forcing the Treasury Department to adopt fresh maneuvers almost on a daily basis. However, with the passage of the bill in the Senate, the Treasury can now heave a sigh of relief. The legislation was cleared on Thursday night with 63 votes in favor and 36 votes against it.
The Treasury had said Thursday that while it's "tentatively" intending to proceed with its regular auctions of three- and six-month bills next Monday, it may have to postpone them if Congress does not pass the legislation by that time, reported Bloomberg.
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On Wednesday, Treasury Secretary Janet Yellen's department announced it was making available an extra $1.9 billion worth of extraordinary measures through a complex debt-swap maneuver. The amount of cash with the Treasury shrank to just $37.4 billion on May 30, the least since 2017, the report said.
Price Action: The iShares 1-3 Year Treasury Bond ETF (NASDAQ:SHY) gained 0.05% in the last five days while the Vanguard Short-Term Treasury Index Fund ETF (NASDAQ:VGSH) rose 0.09%, according to Benzinga Pro.
The Senate was under terrific pressure to approve the bill before Monday when Treasury Secretary Janet Yellen had estimated the federal government will run out of funds. All 100 senators had reached an agreement to debate up to 11 amendments and then promptly vote on passing the legislation, according to Reuters.
The House passed the debt ceiling deal on Wednesday night with a total of 314 votes in favor of the bill and 117 votes against it.