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How to tell if the US Treasury is having trouble borrowing in the bond market
Because the U.S. government is running substantial budget deficits, the U.S. Treasury is borrowing heavily at its regular auctions of Treasury bills, notes, and bonds—nearly $1 trillion of additional net issuance in the first six months of calendar year 2024 alone. The U.S. government’s growing appetite for borrowing—and occasional hiccups in the $27 trillion market for Treasury debt—prompt occasional concerns that investors may someday balk at lending to the U.S. government. Some market participants speculate about the possibility of a “failed auction” or a “financial crisis” of some sort. Of course, ... (full story)