Politics
US Treasury Sparks Debate Over Auction Cutbacks to Temper Yields
Key Points
Bonds US Treasury Sparks Debate Over Auction Cutbacks to Temper Yields The US Treasury triggered debate this week about something that’s for years been an article of faith about the world’s biggest bond market: the government’s auctions of notes and bonds will just have to keep getting bigger. Large, sustained fiscal deficits mean the Treasury nowadays sells a lot more of most every type of government security. The overall market has more than doubled in size since 2018, to about $31 trillion.
Bonds
US Treasury Sparks Debate Over Auction Cutbacks to Temper Yields
The US Treasury triggered debate this week about something that’s for years been an article of faith about the world’s biggest bond market: the government’s auctions of notes and bonds will just have to keep getting bigger.
Large, sustained fiscal deficits mean the Treasury nowadays sells a lot more of most every type of government security. The overall market has more than doubled in size since 2018, to about $31 trillion. Officials in recent years have relied heavily on bills, which mature in up to a year, to meet expanding funding needs. But dealers widely assumed the department would at some point ramp up note and bond auctions also.