Raising Debt.

The U.S. Treasury is expected to auction about $101 billion in various maturities this week.  To judge the pace of borrowing, I looked back at some past data.  In 2006 the government sold $17.1 billion in 3-month T-bills.  Consider that a baseline of sorts.  In 2007 they sold $17.9 billion.  The current financial mess had its beginning in September of that year with the forced merger of Bear Sterns.  In 2008 they sold $24.5 billion, a substantial increase, as the Lehman collapse brought financial markets to a standstill.  In the first quarter of this year they sold $29.5 billion.  That’s no typo, they sold more in the first
three months of this year than in all if last year.  The week ending
April 27  saw total sales of this particular maturity of $29.0 billion,
or about as much in one week as was sold in the prior 13 weeks.  This
is no fluke either; they have auctioned off about that same amount each week this month!  And the numbers are quite similar for the other maturities as well.  How long buyers will keep coming to the auctions and accepting such meager returns remains an open question, but the yield curve is steepening.  Perhaps the rest of the world is wanting higher rates regardless of the Fed’s desires.  Will they stop participating if we don’t give them what they want?