Strategic move: Fed chairman Jerome Powell and US Treasury Secretary Janet Yellen at a meeting of the Financial Stability Oversight Council in Washington. The Fed is shrinking its holdings of treasuries, obligating bigger government sales of them to other buyers. — AFP
NEW YORK: The US Treasury is set this week to begin a ramp-up in the issuance of longer-dated securities that’s likely to stretch into next year, forced by a rapidly deteriorating budget deficit and soaring interest rates.
For the first time since early 2021, the Treasury will boost its so-called quarterly refunding of longer-term treasuries to US$102bil (RM460bil) from US$96bil (RM433bil), the consensus among dealers suggests.
