Treasury Plans to Borrow More This Quarter Than Previously Estimated

The US Treasury Department plans to increase net borrowing to $329 billion from July to September, exceeding previous estimates. This rise is due to tax cuts and increased spending. The Treasury faces challenges in funding this borrowing, with questions about whether to issue more short-term or long-term notes. Recent three-month T-bills had the highest yield since 2008, indicating potential investor pushback. Expectations of future interest rate hikes are influencing yields. Market reactions to Treasury actions, such as weak demand for three-year notes, may signal investor reluctance to absorb more issuance.

What is the net borrowing amount projected by the US Treasury Department from July through September?

What factors have contributed to the increased borrowing by the Treasury Department?

What challenges might the Treasury Department face regarding the issuance of notes and bonds?

How did the yields on three-month T-bills compare to previous years?

What implications could the upcoming issuance of three-year notes have for investors?