This week, the U.S. Department of the Treasury's bond auction financing scale reached 839 billion dollars, setting a new historical high

The U.S. government raised $839 billion this week through the issuance of Treasury bills and bonds, setting a historical record. This move is both to repay maturing debt and to raise additional funds needed for federal deficit financing. The scale of Treasury bills, floating rate notes, and the auctions of 2-year, 5-year, and 7-year Treasury bonds held this week exceeded the previous record of $834 billion set during the same period last year.

This total of $839 billion covers the scale of 11 auctions, most of which is used to repay the principal to holders of maturing Treasury bills. The portion that truly represents "new borrowing" for the U.S. government is only $106 billion, far from reaching historical highs. The previous peak occurred in March and April 2020, when the scale of Treasury bond auctions surged to raise funds to respond to the pandemic, with weekly net new cash reaching a peak of nearly $362 billion.

Tony Fallon from Mischler Financial Group's interest rate sales and trading department stated, "The total amount of debt issued by the Treasury each week reaching a historical high is certainly not a good thing. The biggest risk is that investors may demand higher yields."