Yields on four-week Treasury bills climbed seven basis points on Tuesday, bringing their rise since the beginning of May to more than 60 basis points. The two-year Treasury yield increased four basis points, while the 10-year yield was flat. U.S. equity futures were little changed after a lackluster day on Wall Street.
The debt-ceiling saga has been the center of attention in global markets with time running out for US politicians to reach a deal. President Joe Biden and House Speaker Kevin McCarthy called their discussions on Monday productive, but an agreement that would avert a catastrophic U.S. default remains elusive. That left traders on tenterhooks with only a few days left before June 1, when Treasury Secretary Janet Yellen said her department may run out of cash.
Tokyo's Topix index fell for the first time in eight days, with semiconductor-related stocks turning lower on news that Japan's tighter export controls will take effect July 23.