Treasury Debt Offering a Record
The Treasury Department yesterday announced another record quarterly debt offering, but bond market analysts said the issuance of a "massive" amount of government securities this quarter was anticipated and will have little immediate impact on interest rates.</br></br>At a press conference to announce the quarterly refunding. Acting Assistant Secretary for Domestic Finance John Niehenke said the government probably would reach its legal limit on borrowing at the end of September.</br></br>The Treasury will ask Congress after its August recess to raise the debt ceiling of $1,823 trillion, Niehenke said. However, Treasury officials had not yet decided what the new limit should be because it depends on the status of budget negotiations, Niehenke said.</br></br>The Treasury will offer $21.75 billion of securities to refund $12.3 billion of publicly held debt maturing on Aug. 15 and to raise $9.4 billion of new cash.</br></br>The Treasury will offer three securities. The size of all three will surpass previous records, Niehenke said.