Reuters Good news of a tentative deal for the U.S. debt ceiling impasse may quickly turn out to be bad news for financial markets.

U.S. President Joe Biden and top congressional Republican Kevin McCarthy on Saturday reached a tentative deal to raise the federal government39;s 31.4 trillion debt ceiling, two sources familiar with the negotiations said, potentially averting an economically destabilizing default.

But the deal still faces a difficult path to pass through Congress before the government runs out of money to pay its debts in early June.

This will be pretty good for the market, said Amo Sahota, director at KlarityFX, adding that it may give more reason for the U.S. Federal Reserve to feel confident about raising rates again.

Although we want to see what the … deal looks like, Sahota added.

While an end to uncertainty would be welcome, the relief that may come from a deal may be a shortlived sugar high for investors. That39;s because once a deal is reached, the U.S. Treasury is expected to quickly refill its empty coffers with bond issuance, sucking out hundreds of billions of dollars of cash from the market.

The raising of ceiling is expected to be followed by the issuance of nearly 1.1 trillion in new Treasury bills Tbills over the next seven months, according to recent JPMorgan estimates, a relatively large amount for that short a period.

This bond issuance, presumably at the current high interest rates, is seen depleting banks39; reserves, as…