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U.S Debt Sales Top Crisis-Era Levels as Fiscal Bump Spurs Growth

  • Treasury lifts long-term debt sales for 4th straight quarter
  • U.S. to offer $83 bln at refunding from $78 bln previously
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The U.S. Treasury Department announced debt sales will surpass levels last seen when the country was digging out of its worst economic crisis since the Great Depression. This time around, fiscal stimulus is adding fuel to an already growing economy.

A ballooning budget shortfall -- fueled by tax cuts, spending hikes and an aging population -- is driving the U.S. Treasury to raise its long-term debt issuance at its quarterly refunding auctions to $83 billion from $78 billion three months ago, the department said Wednesday. The need for the Treasury to raise auction sizes for a fourth straight quarter is also partially driven by the Federal Reserve’s decision not to replace some of its Treasury holdings when they mature as it winds down crisis-era stimulus measures.