US to Keep Note, Bond Sales Steady for at Least Several Quarters

The US Treasury indicated it’s not looking to boost sales of notes and bonds until well into next year, in a decision that will see the government increasingly rely on bills to fund the budget deficit.

In its so-called quarterly refunding statement Wednesday, the department said it anticipated keeping auction sizes unchanged for nominal notes, bonds and floating-rate notes, “for at least the next several quarters.” That language, which it’s been using since early last year, reflects the higher cost of issuing longer-dated securities compared with bills, which mature in up to a year.