The holiday-shortened week will be an interesting one in the United States bond market.
Late last month, the Treasury Department confirmed that it would need to sell more debt and increase its borrowing to cover its spending obligations amid significant tax cuts. The Treasury started unleashing its bond issuance earlier this month, but a fresh supply will begin this week.
On Tuesday, the Treasury will issue $151 billion worth of bills, including $28 billion worth of two-year fixed rate notes, as well as a historic amount of three-month and six-month Treasury bills.
On Wednesday, the U.S. government will sell $35 billion in five-year T-bills. On Thursday, the Treasury will issue $29 billion in seven-year notes. It will also add $15 billion to a previous two-year floating-rate issue.
Have you crunched the numbers? This equals to about a quarter of a trillion dollars of new debt in just four days. This is an all-time weekly high.
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