U.S. Treasury planning bigger debt auctions, warns of February debt limit

Prior to the Christmas break, the Treasury Department confirmed that it was going to borrow more as the Federal Reserve winds down the $4.5 trillion balance sheet and the federal government cuts taxes.

In other words: Washington is taking on more debt, rather than cutting spending.

On Wednesday, the Treasury released its increase in auction sizes for three, 10, and 30 Year maturities. In total, the Treasury will provide $66 billion in Treasury securities, up from $62 billion from the fourth-quarter.

Here is what bond traders are looking at:

– Treasury will $26 billion of three-year notes, compared to $24 billion in November.
– Treasury will sell $24 billion fo 10-year notes, up from $23 billion in November.
– Treasury will sell $16 billion of 30-year notes, an increase from $15 billion in November.

It is widely expected that net Treasury issuance will surge to $1 trillion this year.

What’s going to happen when the bond market bubble bursts?

Moreover, the Treasury warned that it will only have enough money to cover the government’s expenses until sometime in February.

“Based upon available information, Treasury expects to be able to fund the government through the end of February,” Clay Berry, Treasury’s deputy assistant secretary for capital markets, said in a statement. “Treasury urges Congress to act promptly on this important matter.”

America’s fiscal mess is set to explode.

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Comments

  1. No problem we have plenty of blank checks! Who needs a budget much less a balanced one? Continuing resolutions to continue spending. Where are all those small government Republicans we sent to stop this? Meet the new boss, just the same as the old boss. Heads they win tails we lose. Had enough yet? dtinusforcongress.com

    • JRATT1956 says:

      I wish you well in your bid for office, but the runaway train has already left the station. It is out of control and on a collision course for one of the worst financial catastrophes in human history. It may be the one major cause of world war 3 and the return of Christ. World Politicians have screwed things up so much, Christ is our only hope.

  2. Thanks but nothing has changed from the resurrection. Christ has been our hope since. I been through several personal economic collapse in my life. As a homeless teen in high school and other times as a young adult. I grow my own food, have a 1/2 acre pond, chickens, rabbits, live in the middle of a woods in the best climate in the US. I have solar and many other resources so you are preaching to the choir. I have a VERY strong protector/ paternal drive and can’t help but defend those who can not. I served those who can not give me a thing in return all my life. It is who I am to the core and at soon to be 58 I’m not changing anytime soon. Pray for me and the nation. I seen some pretty strange things and if it is to be it will be. I for one will do as I feel I must.

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