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The U.S. stock market is closed on Monday, May 29 for Memorial Day, as is the bond market, but the trading session for bonds also ended early Friday at 2 p.m. Eastern, ahead of the long holiday weekend.
Investors have been glued to developments on the U.S. debt-ceiling impasse in recent days, with talks in Washington looking somewhat promising on Friday for an agreement to be reached to avert bringing the U.S. to the brink of a default.
Read: Here’s what’s in the emerging debt-ceiling deal — such as a cut to the IRS
Trading has been volatile in U.S. debt, especially in short-term Treasury bills due around the June 1 “X-date,” or when Treasury Secretary Janet said the government is likely to run out of enough funds to coverall its bills, without a deal to suspend or increase the current $31.4 trillion U.S. borrowing limit.
The rate on the 1-month
T-bill, issued on May 9 and maturing on June 6, was at 5.649% Friday, down 139.2 basis points from 7.041% two days ago, writes MarketWatch’s Vivien Lou Chen. The 10-year Treasury yield
was near 3.8% Friday.
Related: Here are 3 key things to know about markets and the debt-ceiling fight as Memorial Day weekend approaches
Stocks finished higher on Friday as well, but with the Dow Jones Industrial Average
booking a 1% decline for the week, according to FactSet. The S&P 500 index
rose 0.3% weekly gain, while the Nasdaq Composite Index
gained 2.2% for the week, powered by excitement around Nvidia Corp.’s
earnings and optimism around AI technologies. The S&P 500 and Nasdaq also both closed Friday at their highest levels since August 2022.
Also see: Memorial Day weekend: Is the post office delivering mail on Monday? Are banks open?