WASHINGTON, Oct 17 (Reuters) - The U.S. Treasury Department on Thursday said it would re-open sales of securities to local and state governments that had been halted to keep the U.S. government from breaching the debt limit.
The Treasury said it is "resuming the sale of State and Local Government Series nonmarketable Treasury securities, effective today," at 1:00 p.m. (1700 GMT). The suspension had assisted Treasury's management of the debt subject to limit until a bill was signed by President Barack Obama that ended the 16-day partial government shutdown and raised the U.S. borrowing cap.
The securities, called "slugs," are sold to states and municipalities. The move to stop the sales was taken as part of extraordinary measures by the Treasury to comply with the debt ceiling as the Obama administration and Congress negotiated a solution.