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

Odaily reported: The U.S. government raised $839 billion this week through the issuance of Treasury bills and Treasury 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 last year's record of $834 billion set during the same period.

The $839 billion total covers the scale of 11 auctions, most of which was used to repay principal 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 volumes surged to raise funds for the pandemic response, with weekly net new cash once reaching a peak of nearly $362 billion.

Tony Farren of Mischler Financial Group's rates sales and trading desk said: "The Treasury's total weekly debt issuance hitting an all-time high is by no means a good thing. The biggest risk is that investors may demand higher yields." (Jinshi)