Treasury Sees Debt Limit End 2012, Plans $72 Billion Sale
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The U.S. Treasury Department reiterated today it expects to reach the federal debt limit “near the end of 2012,” and said that it plans to sell $72 billion in notes and bonds in next week’s refunding.
The Treasury said in a statement today that it can use “extraordinary measures” that would “provide sufficient ‘headroom’ under the debt limit to allow the government to continue to meet its obligations until early in 2013.” The Treasury also said an auction under its planned floating-rate note program is “estimated to be at least one year away.”