US Ramps Up Debt Issuance, Adding Fuel to Selloff in Treasuries
- Treasury Department releases quarterly refunding plan
- Bill issuance is also set to increase ‘in the coming days’
The US Treasury boosted the size of its quarterly bond sales for the first time in 2 1/2 years to help finance a surge in budget deficits so alarming it prompted Fitch Ratings to cut the government’s AAA credit rating a day earlier.
The Treasury said it will sell $103 billion of longer-term securities at its so-called quarterly refunding auctions next week, an amount slightly larger than most dealers had expected. It also plans bigger sales of debt across the maturity spectrum. The announcement contributed to a selloff in Treasuries that sent 10-year yields to the highest levels since November.