“The US Treasury has no problem issuing more debt. We will take advantage of lower interest rates to refinance a lot of US debt,” said Treasury Secretary Mnuchin on Thursday.
“The government has shut down parts of the economy, now is the time we provide government support,” Mnuchin added and explained that they believe there will be a pickup in activity in the third quarter and a “gigantic rebound” in the fourth quarter.
Market reaction
These comments seem to be easing concerns over USD funding shortage. As of writing, the US Dollar Index, which touched its highest level since January 2017 at 102.357, was up 0.75% on the day at 101.65.
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