Treasury Seen Holding Debt Sales Flat for Several Quarters as Deficit Runs Near $2 Trillion
Updated
Updated · Yahoo Finance · Aug 3
Treasury Seen Holding Debt Sales Flat for Several Quarters as Deficit Runs Near $2 Trillion
3 articles · Updated · Yahoo Finance · Aug 3
Summary
Wednesday’s refunding statement is expected to repeat that note and bond auction sizes will not rise for at least the next several quarters, despite Wall Street calls to loosen that guidance.
30-year Treasury yields hit their highest level since 2007 last week, raising the risk that any hint of bigger long-term debt sales would push borrowing costs even higher.
Bessent has instead leaned on short-term bills to fund growing needs because they carry lower rates, but that leaves debt-service costs more exposed if front-end rates jump.
Treasury updates its current-quarter borrowing estimate on Monday after projecting $671 billion in net borrowing for the three months through September in May.
Economists see federal deficits running at roughly a $2 trillion annual pace for years, increasing pressure on Treasury to eventually expand issuance even as officials try to avoid a yield spike.