Investors scrutinize US Treasury debt issuance guidance
Updated
Updated · Bloomberg · May 3
Investors scrutinize US Treasury debt issuance guidance
10 articles · Updated · Bloomberg · May 3
Attention is on Wednesday's quarterly refunding statement for any shift from guidance that note and bond issuance increases are not expected for at least the next several quarters.
The Treasury must finance a near-$2 trillion annual deficit, leaving markets focused on whether it keeps leaning on short-term bills rather than expanding longer-dated borrowing.
Longer-term Treasuries currently cost more to issue than short-dated debt, but heavy reliance on bills carries refinancing and funding risks that investors are weighing closely.
As the Federal Reserve steps back, who will buy America's escalating debt without demanding much higher rates?
With debt servicing now exceeding defense spending, is a global US Treasury crisis inevitable?
Is the Federal Reserve losing its independence to the government's massive financing needs?