U.S. T-bill rates extend fall after Senate debt deal


NEW YORK, Oct 16 (Reuters) - Interest rates on U.S. Treasurybills due in late October through early November extended theirearlier decline on Wednesday after Senate leader Harry Reid saidhis congressional chamber reached a deal to raise the debtceiling and to reopen the government.

But the bid and offered rates on these T-bill issuesremained as much as 0.10 percentage point apart after the dealannouncement, suggesting traders' caution over whether the dealcould clear the House of Representatives.

During normal trading conditions, the bid-ask spread onT-bill rates is 0.01 percentage point or 1 basis point.

The rates on the T-bill issue due on Oct. 31 was last quoted at 0.3025-0.2025 percent, near their sessionlows and down nearly 22 basis points from late on Tuesday.

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