You can guess how this affects my debt-curve-based doomsday schedule.
April 30, 2024
US Government Plans to Borrow More This Quarter Amid Disappointing Tax Receipts
Treasury aims to borrow $1 trillion over the next six months.
by Andrew Moran
TheEpochTimes.com
BTW, the U.S. debt isn't $33 trillion. It's $34.7 trillion.
The U.S. government plans to borrow more cash from private investors this quarter than initially forecast amid less-than-expected tax receipts, the Treasury Department said on Monday.
According to the department’s latest Treasury Refunding Announcement, Washington anticipates borrowing $243 billion in the April-June period. This is $41 billion higher than officials projected at the beginning of the year and much greater than market forecasts.Treasury officials stated that the federal government’s tax receipts have fallen short of forecasts so far this fiscal year. The Treasury does not share its forecasts for tax revenues with the public.
For the January-March quarter, the Treasury borrowed $748 billion in private marketable debt, slightly under the first estimate of $760 billion. This was mainly due to lower federal outlays.
Looking ahead to the July-September quarter, the department expects to borrow $847 billion.
This year, Wall Street has been paying closer attention to the Treasury’s debt issuance efforts.
The department’s auctions, usually mundane affairs, have become notable events for investors. This is because traders will demand higher yields to cover additional supply when the government issues more debt, which occurred this past fall when the benchmark 10-year yield briefly topped 5 percent.
Over the last several months, the Treasury’s debt auctions have been largely disappointing as domestic and foreign investment demand has been lackluster. Primary dealers, which are financial institutions tasked to scoop up leftover supply, have been purchasing an above-average percentage of government bonds.
For instance, primary dealers acquired about 24 percent of the $39 billion in 10-year Treasurys at the April 10 Treasury auction.
Washington has been flooding capital markets with government bonds to help manage ballooning deficits and higher interest payments. The federal deficit has already crossed the $1 trillion mark halfway through the current fiscal year, while interest costs are among the top budgetary items.
In the previous Treasury Refunding Announcement, officials said that they do not plan to boost the issuance of medium- and long-term debt “for at least the next several quarters.
”U.S. Treasury yields were mostly in the red to finish the April 29 trading session. The 10-year stayed above 4.60 percent. The 2-year yield slipped below 4.97 percent, while the 30-year bond fell underneath 4.73 percent.
More details of the Treasury’s fiscal plans will be released on May 1.
http://www.theepochtimes.com/us/us-government-plans-to-borrow-more-this-quarter-amid-disappointing-tax-receipts-5640175?utm_source=partner&utm_campaign=TheLibertyDaily
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