This is a syndicated repost courtesy of Online Course Notes For Financial Markets and Banking. To view original, click here. Reposted with permission.
The U.S. is set to sell $26 billion of 2028 notes Wednesday, the largest auction of 10-year Treasuries ever and eclipsing the previous record of $25 billion, first set in 2009. The sale follows last week’s quarterly refunding announcement, which saw the Treasury once again amp up issuance plans to finance the widening federal budget deficit.
The US debt explosion jumped in 2007 and never returned to the old trajectory.
Liquidity moves markets!Click here to learn how you can follow the money.
Unfortunately, the Congressional Budget forecasts that budget deficits (spending less tax receipts) are projected to keep rising.
As interest rates continue to rise, debt servicing costs rise causing stress for the US Treasury.
The average maturity of Treasury debt is only around 70 months, so most debt auctions are less than 10 years.
The time has come today to stop the massive Federal spending and debt issuance. Before this happens.
Wall Street Examiner Disclosure:Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. I am a contractor for Money Map Press, publisher of Money Morning, Sure Money, and other information products. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. In some cases I receive promotional consideration on a contingent basis, when paid subscriptions result. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. No endorsement of third party content is either expressed or implied by posting the content. Do your own due diligence when considering the offerings of information providers.