Barclays: U.S. Treasury Issuance Expected to Remain Unchanged for Two Consecutive Years

Odaily News Barclays Bank interest rate strategists forecast in a research report that the U.S. Treasury Department will maintain the issuance scale of interest-bearing bonds unchanged in the next quarter and throughout the 2026 fiscal year. Analyst Dhiraj Narula pointed out that this prediction aligns with previous policy guidance, meaning that the issuance scale has remained stable for a full two years since the last increase from February to April 2024. Narula emphasized in the report that the underlying fiscal situation in the United States remains severe. He noted: "The annual deficit approaching $2 trillion continues to put pressure on the U.S. Treasury Department regarding debt issuance." Although the scale is currently expected to remain unchanged, Narula reminded that the U.S. Treasury Department stated last November that it had "begun preliminary considerations for potentially increasing" auction sizes in the future. Therefore, the upcoming quarterly refunding announcement may reveal the latest progress on these expansion plans. (Jin10)