US Treasury Seen Boosting Long-Term Debt Sales One Last Time

  • Most dealers see refunding auction getting third straight lift
  • Potential Fed shift to slowing Treasuries runoff seen as key
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Wall Street is widely expecting the US Treasury to announce a final increase to its sales of long-term debt this week, after a steady ramp up in supply that’s sometimes tested buyers’ appetites for funding a widening budget deficit.

The Treasury Department is expected on Wednesday to follow through on its November guidance of a third round of increases in its so-called quarterly refunding auctions of notes and bonds. That would put the total at $121 billion, not far from the record sizesBloomberg Terminal during the Covid crisis.