Economics
U.S. Treasury Set to Borrow $1 Trillion for a Second Year to Finance the Deficit
- Auction boosts over past quarters sufficient, dealers say
- With debt supply rising, solid demand helping keep yields low
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The U.S. Treasury Department is set to maintain elevated sales of long-term debt to finance the government’s widening budget deficit, with new issuance projected to top $1 trillion for a second-straight year.
Many strategists at primary-dealer firms predict that this Wednesday’s quarterly refunding announcement will see the Treasury maintain note and bond sales at the record high levels they have boosted them to in recent months.