US Treasury: Record $123 Billion Bond Auction Next Week

‘In debt we trust.’


treasury-department

NEW YORK, Oct 22 (Reuters) – The U.S. government announced a record volume of $123 billion worth of bond auctions next week, which came at the high end of some analysts’ expectations but caused no major market ructions.

The figure beats the previous record of $115 set in July and includes two-, five- and seven-year notes in tandem with an offering of previously issued five-year Treasury Inflation Protected Securities.

Upside surprises came in a slightly larger-than-expected seven-year note sale of $31 billion and a chunkier TIPS offering of $7 billion.

The government will also sell $44 billion of two-year notes, and $41 billion worth of five-year notes.

Treasury debt prices took the announcement in stride, remaining steady at lower levels on the day US10YT=RR.

Investors have kept a close eye on U.S. debt auctions this year in light of the government’s burgeoning budget deficit. During a brief period in May some questioned the longevity of the United States’ prized AAA rating.

The U.S. budget deficit hit a record $1.4 trillion in the fiscal year that ended on Sept. 30 as the deep recession and a series of bank rescues cut a gaping hole in public finances.

In terms of the economy, the budgetary shortfall amounted to 10 percent of total U.S. economic output, the most for any budget shortfall since World War Two, and the White House has forecast deficits of more than $1 trillion through fiscal 2011.

(Reporting by Burton Frierson, Editing by Chizu Nomiyama)
Thu Oct 22, 2009 11:31am EDT

Source: Reuters

Related information:

Wall Street insider Nomi Prins: ‘Recovery is not even on horizon’

Vice President Joe Biden Declares The US Is in A Depression

Niall Ferguson (’Ascent of Money’): The US Dollar Is Dying a Slow Death; There Has Been No Stock Market Rally

Gerald Celente: ‘Their is no recovery; It’s a coverup. We are already in the Greatest Depression.’

How The Federal Reserve Banksters Bailed Out The World

Death of ‘Soul of Capitalism:’ 20 reasons America has lost its soul and collapse is inevitable

Latin American leaders agree on new currency, sanction Honduras

Russia ready to abandon US dollar in oil, gas trade with China

Iran to drop US dollar from forex reserves

Sumitomo Chief Strategist: US Dollar to Hit 50 Yen, Cease as Reserve Currency

DOW at 10,000!!! Oh Wait, Make That 7,537

Marc Faber on Bloomberg: Dollar decline and inflation – Oct. 14, 2009

David Tice: Gold Heading to $3000 Unless America Hits the ‘Reset’ Button

Jim Rogers: ‘I Am Quite Sure Gold Will Go Over $2000′, Dollar Will Lose Reserve Status

US Dollar Reaches Breaking Point as Central Banks Shift Reserves

Financial Times: US mantra of strong dollar loses its value

The Federal Reserve buys Fannie Mae bonds; Timothy Geithner is a liar

Gerald Celente on the demise of the US dollar: ‘The US is failing on it’s most basic level’

Glenn Beck: What If Oil Will No Longer Be Traded In US Dollars? Deficit Spending, Printing, Monetizing Debt, The Dollars Demise

Max Keiser on RT: ‘Dollar to be buried way before 2018′

The demise of the US dollar

Iran Replaces The US Dollar With The Euro

US: Hyperinflation Nation

China advertises silver and gold investment on TV; Cheap dollars are sowing the seeds of the next world crisis

Leave a Comment