The U.S. Treasury raised $839 billion through this week's government bond auctions, setting an all-time record

Odaily Report: The U.S. government raised $839 billion this week by issuing Treasury bills and notes, setting an all-time record. The move was aimed both at repaying maturing debt and at raising the additional funds needed to finance the federal deficit. The scale of this week's auctions of Treasury bills, floating-rate notes, and 2-year, 5-year, and 7-year Treasury notes exceeded the previous record of $834 billion set in the same period last year.

The $839 billion total covers the size of 11 auctions, most of which was used to repay the principal owed to holders of maturing Treasury bills. The portion that truly represents "new borrowing" by the U.S. government is only $106 billion, far from a historical high. The previous peak occurred in March and April 2020, when Treasury auction sizes surged to raise funds for the pandemic response, with net new cash once peaking at nearly $362 billion in a single week.

Tony Farren of the rates sales and trading desk at Mischler Financial Group said: "The Treasury setting a record high for total weekly debt issuance is by no means a good thing. The biggest risk is that investors may demand higher yields." (Jinshi)