Treasury Bill Barrage Is Just a Prelude to Longer-Term Debt Deluge
- A surge in issuance across maturities to pressure rates
- Treasury set to pay more as it faces ‘price-sensitive’ buyers
Visitors gather at the base of the Washington Monument in Washington, D.C., US.
Photographer: Samuel Corum/Bloomberg
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The barrage of fresh Treasury bills poised to hit the market over the next few months is merely a prelude of what’s yet to come: a wave of longer-term debt sales that’s seen driving bond yields even higher.
Sales of government notes and bonds are set to begin rising in August, with net new issuance estimated to top $1 trillion in 2023 and nearly double next year to fund a widening deficit. The Treasury is already in the middle of an estimated $1 trillion bump in bills as it seeks to replenish its cash coffers in the wake of the debt-limit deal.