U.S. Raises Longer-Term Debt Sales as Budget Deficit Worsens
- It raises size of 3-, 10- and 30-year debt sales next week
- Treasury also plans to lift all other tenors sold over quarter
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President Donald Trump’s administration will increase the amount of long-term debt it sells to $66 billion this quarter, marking the first boost in borrowing since 2009 as the Treasury seeks to cover mounting budget deficits.
The Treasury is shaping the government’s borrowing plans against a budget shortfall that grew to $665.7 billion last fiscal year because of higher spending on Medicare, Social Security and other programs for an aging population. The gap is expected to widen further due to tax cuts enacted this year that are projected to reduce revenue by almost $1.5 trillion over the next decade.