Lindsay Dunsmuir
Washington | The US Treasury said it expects to borrow $US56 billion more during the third quarter than previously estimated, and market participants expect shorter-dated Treasuries to absorb the brunt of the new supply as the Trump administration grapples with a mushrooming budget deficit.
The federal government is ramping up bond issuance to cover a budget hole fuelled by big spending increases and falling corporate tax receipts. It also has to fill gaps left as the Federal Reserve cuts its massive bond portfolio.
The Treasury Department said in a statement that it expects to issue $US329 billion through credit markets during the July-September period, assuming an…
Read the full article at: https://www.afr.com/markets/debt-markets/us-expects-to-sell-us329b-of-debt-in-september-quarter-20180730-h13cos