U.S. Treasury Cuts Quarterly Sale of Long-Term Debt as Spending Slows
- Dealers see challenges ahead with Fed expected to cut holdings
- Treasury doesn’t rule out further reductions down the road
The U.S. Treasury building in Washington, D.C.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
The U.S. Treasury trimmed its quarterly sale of longer-term debt for a second straight time, reflecting diminishing borrowing needs after a record ramp-up in debt to fund pandemic-relief spending.
The Treasury Department said in a statement Wednesday that it will sell $110 billion of long-term securities at auctions next week -- down $10 billion from November and in line with many dealers’ forecasts. It’s the first back-to-back reduction since 2015, after the unprecedented sizes of last year.