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Treasury Prepares Another Debt Deluge as Fed Wades Into Market

  • Dealers see 4th straight quarter of refunding at record level
  • Fed to absorb about half of net issuance next year: TD
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Fed to Start Buying $60 Billion of Treasury Bills Per Month
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The U.S. Treasury this week releases the next stage of its strategy to cover a budget deficit that’s expected to surpass $1 trillion this fiscal year, as the department continues to search for new ways to attract buyers for its record debt issuance.

It needn’t agonize just yet, however. For the next few months the Federal Reserve will be scooping bills out of the market -- part of its effort to calm the repo market -- about as fast as the government can pour them in.