US Treasury Raises Record $839 Billion in One Week, Mostly to Refinance Maturing Debt

The U.S. government raised $839 billion through 11 Treasury auctions this week, a single-week record, according to Bloomberg. Most of the proceeds will repay maturing debt, with net new borrowing at just $106 billion. The total surpassed last year's record $834 billion. Auctions spanned Treasury bills, floating-rate notes and 2-, 5- and 7-year notes. The record net weekly borrowing remains roughly $362 billion, set between March and April 2020 during pandemic stimulus. Tony Farren, managing director of rates sales and trading at Mischler Financial Group, said the record total is not a positive development, warning that investors may demand higher yields to absorb the supply. The Treasury has relied on expanded weekly bill auctions to meet rising borrowing needs while holding 2- to 30-year coupon auction sizes steady. Strategists expect the Treasury to adjust that guidance in its next quarterly statement on November 4.