The US Treasury announced that it will borrow $276 billion in the third quarter — more than the $265 billion expected. Second quarter borrowing was about $10 billion less than expected, so it’s not a big hit.
The Treasury says the change is primarily due to lower receipts and higher outlays and noted that activity has moderated.
Deficits will need to be dealt with but the economy is weak so if the market is lending at 1.5% for 10 years, take it.
No reaction in the bond market to the news.
