Odaily Planet Daily reports that the U.S. government raised $839 billion this week through the issuance of Treasury bills and bonds, setting a new all-time high. This move was aimed at both repaying maturing debt and raising additional funds needed to finance the federal deficit. This week’s auctions of Treasury bills, floating-rate notes, and 2-year, 5-year, and 7-year bonds exceeded last year’s同期 record of $834 billion.
The total of $839 billion covers the scale of 11 auctions, most of which were used to repay principal to maturing Treasury holders. The portion truly representing new borrowing by the U.S. government amounted to only $106 billion, far below historical highs. The previous peak occurred in March and April 2020, when Treasury auction sizes surged to raise funds for pandemic response, with weekly net cash inflows reaching a peak of nearly $362 billion.
Tony Fallon of Mischler Financial Group’s Interest Rate Sales and Trading division said: “The Treasury’s weekly total debt issuance reaching a record high is certainly not a good sign. The biggest risk is that investors may demand higher yields.” (Jin10)