Treasury’s Ramp Up in Bill Sales Triggers Supply Digestion Fears
- Sizes increased across the complex to finance larger deficits
- Dealers ‘quite full’ on T-bills already, TD’s Goldberg says
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The US Treasury’s move to ratchet up the size of its bill offerings is stoking concern that the deluge of supply will choke the market and threaten vital sources of funding.
Since the government suspended the debt ceiling at the beginning of June, the Treasury has issued roughly $852 billion of bills on net and plans to raise another net $53 billion next week. So far, investors have lapped up supply with ease. Yet signs are emerging that the market is starting to have some difficulty handling the flood of bills.