Treasury Cuts Size of Bill Sales as Debt-Cap Pressures Bite

The US Treasury Department cut the size of its four- and eight-week bill auctions, the beginning of what’s likely to be a series of reductions as the government seeks to preserve its borrowing authority under the statutory debt ceiling.

The Treasury on Tuesday said it plans to sell $75 billion of four-week bills on Thursday, $10 billion less than the previous offering at that tenor. It will also offer $65 billion of eight-week bills, which is $10 billion less than the previous auction. It kept the size of the 17-week bill to be sold Wednesday unchanged at $60 billion.