WASHINGTON — Announcing a record for its quarterly refunding, the U.S. Treasury said Wed nesday it will sell $71 billion of new securities next week to refund $52.2 billion in maturing issues and raise about $18.8 billion.
The Treasury, managing federal finances in a deep recession, said its borrowing needs have swelled because of changes in economic conditions, financial markets and fiscal-policy efforts over the past several months.
The Treasury noted that it expects to reach the debt ceiling between July and December and that it will keep policymakers and market participants apprised of developments as the government’s outstanding debt approaches the legal limit.
As part of its efforts to meet longer-term financing requirements, Treasury announced a second regular reopening of the 30-year bond in the month, which effectively means there will be a 30-year bond auction every month of the year.
The introduction of a 50-year bond, however, is not on the Treasury’s agenda at this time. At least one member of a Treasury borrowing advisory panel had raised the idea of an ultra-long- maturity debt such as a 50-year bond, according to minutes of a meeting the panel held with Treasury officials Monday. Dow Jones Newswires
