Economics
Trump Lifts Debt Sales to Near-Recession Levels as Economy Booms
- Boost in long-term debt sales sends 10-year yield above 3%
- Treasury to sell $78b this quarter and raise $39.8b in cash
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President Donald Trump is boosting long-term U.S. debt sales to the highest since 2010, matching the pace when the country was digging itself out of the worst recession since World War II, even as the economy is booming.
To cope with the fiscal expansion driven in part by Trump’s tax cuts and spending measures approved by Congress, the Treasury Department said Wednesday that it will raise long-term debt issuance to $78 billion this quarter. It is also launching a new two-month bill and will lean more heavily on maturities out to five years.