10 Feb 2025 | News & Feature

TFP W7 2025: Finding succour in the (debt) ceiling

  • Long-term interest rates in the US are declining again while short-term rates rise, as the recent QRA signals the US government’s decision to maintain short duration in the UST market for the upcoming quarters.
  • The ongoing debt ceiling debate adds more clarity to the market, as the US government is in no rush to lift the debt ceiling, thanks to its ample TGA balance.
  • The stabilising UST market has had a positive spillover effect on the SBN market, which does not appear to suffer from repricing amidst the barrage of negative news on the Indonesian economy.