Rates surged on short-term Treasury bills that may be most in danger of not being repaid if Congress can't reach a compromise to lift or suspend the ceiling on government borrowing.

Treasury Secretary Jacob J. Lew last week moved up by two days to Nov. 3 the date by which lawmakers must raise the nation's borrowing capacity to ensure the government can meet daily expenses. The rate on bills due Nov. 12 reached the highest since March.

“That rate is moving as it's the bill that will be most likely at risk,” said Stanley Sun, a New York-based strategist at Nomura Holdings Inc., one of 22 primary dealers that trade directly with the Federal Reserve. “We are heading to the final two-week window for the timeline the Treasury gave, and if the situation doesn't improve then this could escalate to surrounding issues.”