Treasury Postpones Two-Year Debt Auction

The Treasury Department says it is postponing a two-year debt auction scheduled for next week because of concerns that it will not be able to complete the auction if Congress refuses to raise the current debt limit.

The auction had originally been scheduled for next Tuesday with debt posted to the government’s books on Nov. 2. Treasury Secretary Jacob Lew warned Congress last week that he expects to run out of maneuvering room to borrow under the current debt limit by Nov. 3. Lew has been using emergency procedures since last March to clear space to keep the government borrowing and paying its bills.

In its announcement, Treasury said that a five-year note auction and a seven-year note auction scheduled for next week will proceed as planned.