Traders Brace for $102 Billion Wave of Treasury Bond Sales
- Treasury’s quarterly refunding plan is due on Wednesday
- Dealers see series of boosts to debt sales in coming quarters
This article is for subscribers only.
The US Treasury is set this week to begin a ramp-up in issuance of longer-dated securities that’s likely to stretch into next year, forced by a rapidly deteriorating budget deficit and soaring interest rates.
For the first time since early 2021, the Treasury will boost its so-called quarterly refunding of longer-term Treasuries, to $102 billion from $96 billion, the consensus among dealers suggests. While down from the record levels hit during the Covid-19 crisis, that’s well above pre-pandemic levels.