Treasury plans to auction $100 billion of four‑week bills on Thursday, $5 billion more than the previous week.
In a move that underscores massive borrowing demands, the U.S. Treasury will reportedly issue a record $100 billion in four-week Treasury bills this week.
According to a Bloomberg report, the Treasury plans to auction $100 billion of four‑week bills on Thursday, $5 billion more than the previous week, as part of a broader push to rebuild liquidity following the debt ceiling lift.
With tax revenues delayed and spending soaring, the Treasury prefers short‑term bills to bridge funding gaps.
Last week, the Treasury indicated that it plans to lean more heavily on short-term debt instruments to cover budget shortfalls through at least 2026.
This decision follows Treasury Secretary Scott Bessent’s June remarks that longer-term bond yields remain too elevated to justify boosting issuance in that segment.
The department also mentioned it expects to raise auction sizes again in October. While the figure marks the largest-ever single issuance of that maturity, it’s not the biggest overall security the department has ever issued.
The largest single issue on record, totaling $335 billion, matured in April 2025. That security originated as a $46 billion one-year bill sold in April 2024 and was gradually expanded through multiple follow-up auctions.
This week also includes $125 billion in longer‑dated securities: $58 billion in 3‑year notes, $42 billion in 10‑year notes, and $25 billion in 30‑year bonds, figures that reflect steady coupon‑debt issuance.
Money market funds now hold about $7.4 trillion in assets and continue to eagerly absorb the flood of short‑term bills.
The current borrowing trend echoes periods when short‑dated issuance dominated due to affordability.
Despite President Donald Trump administration’s claim that its economic strategies will boost overall economic growth and, in turn, drive higher government revenues, financial experts remain skeptical, with many predicting continued high borrowing requirements, according to Bloomberg.
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