U.S. Debt Sales to Hit Record With Deficit Headed to $4 Trillion
- Treasury to lift auction sizes with focus on longer maturities
- Traders react by pushing up yields on longer-dated Treasuries
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The U.S. Treasury is boosting the amount of debt it plans to issue in the coming quarterly refunding auctions to a record $96 billion to provide government funding as the economy heads into a recession caused by the coronavirus.
The department said Wednesday it anticipates auctioning the first re-booted 20-year bond on May 20, with an expected initial offering size of $20 billion -- larger than most analysts projected. It also unveiled plans to boost overall issuance with a focus on increases to longer-term debt.