WASHINGTON — The Treasury Department, faced with rising budget deficits, announced Wednesday that the government is increasing the size of various securities offerings.
Treasury officials said they will boost the size of the two-year and three-year note auctions by $2 billion per month over the next quarter and also increase the size of the upcoming five-year, seven-year and 10-year notes and the next 30-year bond by $1 billion each starting in February.
Officials had announced Monday that Treasury will have to borrow $441 billion in the current January-March quarter, the largest amount in eight years, as budget deficits surge under the impact of higher spending and the Trump administration tax cuts.
Treasury is employing bookkeeping measures to keep from exceeding the current borrowing limit but will run out of maneuvering room at the end of February unless Congress raises the debt limit.
If Congress does not act it would trigger an unprecedented default on the nation’s $20.5 trillion national debt, sending shock waves through financial markets worldwide.