US Treasury can fulfill all obligations post debt ceiling suspension.

The U.S. Treasury has avoided a potential default on its payment obligations after Congress suspended the debt ceiling. This comes after earlier warnings that the Treasury would run short of funds on Monday if Congress failed to act.

“Now that Congress has acted to suspend the debt limit, Treasury has the tools needed to ensure that the U.S. continues to meet all of our obligations,”

Treasury Secretary Janet Yellen had warned Congress that without a debt ceiling increase, Treasury would be unable to make an estimated $92 billion in payments and transfers this week, including a $36 billion adjustment to the Social Security and Medicare trust funds.

Treasury Takes Action

To address the potential shortfall, the Treasury auctioned $15 billion worth of one-day cash management bills that settled on Monday and mature on Tuesday.

Relief After Debt Ceiling Suspension

After President Joe Biden signed the debt ceiling legislation on Saturday, the Treasury can now breathe a sigh of relief and continue to meet its payment obligations.

• No default on payment obligations
• Treasury has tools to meet obligations
• $92 billion in payments and transfers avoided
• $15 billion in onedebt ceiling suspension.”>-day cash management bills auctioned
• Debt ceiling suspension signed by President Biden

Overall, the debt ceiling suspension has provided a much-needed lifeline for the Treasury and the U.S. government.