“While these changes will make significant progress towards aligning the size of issuance with medium- and long-term borrowing needs, it is likely that further gradual increases will be required in the coming quarters,” the ministry said in a statement.
US bonds are threatened with the approach of halting interest rate increases
Part of that deterioration is due to the higher interest rates that the Treasury is paying on its debt in the current period. The ministry also stated that the tax revenues are lower than expected. Currently, as the Federal Reserve cuts its holdings of Treasuries, by $60 billion a month, the government must sell more to the public.
The size of future increases in long-term bond issuance will depend on the fiscal situation and the length of time the Federal Reserve continues to reduce its investment in bonds, the department said Wednesday.
US debt managers have detailed their plans in the coming months to increase sales of fixed-income Treasury bonds for all other maturities, with volumes that vary according to the security.
2023-08-02 17:48:32
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