TOKYO, Oct 17 (Reuters) - Yields on U.S. Treasury bills duein February were steady in Asian trade on Thursday, reflectingmarket unease that an 11th hour deal to break a U.S. fiscalimpasse had merely pushed back the prospect of another bruisingfight in Washington.
The deal pulled the world's largest economy from the brinkof a historic debt default as it funds the U.S. government untilJan. 15 and raises the debt limit through to Feb.7.
But Democrats and Republicans need to resolve thefundamental issues of spending and deficits that divide them toprevent the possibility of another showdown and renewed blow tomarket confidence early next year.
The uneasy political truce in Washington is keeping yieldson U.S. February T-bills high.
Rates on Treasury bills maturing on Feb. 13 were quoted at 0.096 percent during Thursday's Asian trade. Theyhit a high of 0.14 percent on Wednesday, the highest for theshort-term instrument since it was issued in August, and up from0.05 percent on Friday.
By contrast, yields on bills due on Oct. 24 dipped a touch to 0.2078 percent. They climbed as high as 0.72percent earlier on Wednesday.
The benchmark 10-year U.S. Treasury yield heldsteady at 2.6542 percent on Thursday, while U.S. Treasuryfutures added 5-1/2 ticks.
- Treasury bills