U.S. Treasury says it is to increase T-bill issuance

The US Treasury to increase T-bill issuance. Specifically they will increase four, six, and eight week bills

They say that they do not expect to issue cash management bills. As a result of the debt ceiling increase, they will to increase cash balances to 500 billion by the end of July.

Pres. Trump has indicated that with the Fed not cutting rates, that it doesn’t make sense to issue long dated securities. I wonder if this is the start of that shift to that strategy?

Of course, the Fed doesn’t control longer term rates. They are market-driven.

If there is a more accommodative Fed chair, it doesn’t necessarily mean that the longer-term rates will come down with the shorter-term rates. Just saying.

The U.S. Treasury will sell:

• $65 billion of 17 week bills on July 9
• 70 billion of eight week bills (previously $45 billion) and 80 billion 04 week bills (previously $55 billion) on July 10.

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