Treasury's Strategy to Tackle Rising Debt and Rates: Amplifying Bond Sales
The Treasury Department plans to increase the size of its bond auctions in order to manage its growing debt load and rising financing costs. The department will auction $112 billion in debt next week and will increase the auction size of various maturities, focusing more on coupon-bearing notes and bonds. The Treasury expects to increase the sizes for 2- and 5-year notes by $3 billion a month, the 3-year note by $2 billion a month, and the 7-year note by $1 billion a month. The auction changes are important to investors as they could provide insight into where yields are heading.