T-Notes, Bonds Sale to Raise $1.4 Billion
As interest rates continue to soar, the Treasury yesterday said it will raise $1.4 billion of new cash through the sale next week of $6.75 billion of notes and bonds to help cover federal expenses during the fourth quarter.</br></br>Despite record interest rates, the government hasnÛªt ÛÏscaled back our borrowing,Û said Treasury Undersecretary Anthony Solomon.</br></br>However, he added, ÛÏit certainly costs us more money. The rise in interest rates is substantial as to the cost of financing the public debt.Û</br></br>Solomon said the treasury has1 detected no lack of demand from Americans for purchasing government securities.</br></br>ÛÏWe have found there is very healthy demand still, even under p'res-ent conditions, and will continue to be for U.S. Treasury obligations,Û Solomon said. "The chief problem is that we are paying higher market interest rates.Û