Treasury Secretary Janet Yellen announced plans to increase the size of its bond auctions|Mark Warner|CC BY 2.0
The Fed Chair Jerome Powell hinted that the interest rates would remain unchanged for now but did not rule out more increases.
But JPow shared the limelight yesterday with Treasury Secretary Janet Yellen, who announced plans to increase the size of its bond auctions.
The department is trying to handle its debt load amid rising costs of financing.
Treasury yields have reached their highest levels since 2007 due to weaker demand for bonds, indicating anxiety in financial markets amid higher borrowing costs.
Next week, the department will auction $112 billion in debt, raising over $9 billion in extra funds.
The auction will be divided into three parts. Additionally, the Treasury plans to gradually increase the auction size of various maturities, focusing on coupon-bearing notes and bonds.
The auction includes
- $48 billion in 3-year notes
- $40 billion in 10-year notes
- $24 billion in 30-year bonds
The Treasury anticipates borrowing $776 billion this quarter and $816 billion in the first quarter of 2024.