For some context, the debt ceiling issue in the earlier months this year meant that the US Treasury had to cut back on issuing securities in order to keep stay within limits. But after Trump's spending bill came about and an extension of the debt ceiling by $5 trillion to more than $40 trillion, there is some catching up to do.
If so, that will see them take on borrowing of $590 billion in the final quarter of 2025.
Well, markets are now looking to see if the US Treasury can maintain the status quo in terms of issuances and the size of debt auctions amid the ever increasing US budget deficit. Or more specifically, how long can they keep this up before having to do so. After Trump's "big, beautiful bill" passed, the US fiscal deficit is set to soar even higher to $2.8 trillion potentially over a decade.
The thinking at the moment is that the current needs by the US Treasury can and should be met by issuing more short-term debt i.e. T-bills. In other words, no major shake up is expected in the bond market and for broader markets as well. That is so long as money markets can continue to swallow and digest the ramping up of T-bills issuance.
In any case, this is just something to take note of in case there are any surprises.
This article was written by Justin Low at investinglive.com.Hence then, the article about heads up us treasury to announce more details to their quarterly refunding plans tomorrow was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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