US Plans Record $100 Billion Four-Week Treasury Bill Sale

The U.S. Treasury plans to auction a record $100 billion of four-week Treasury bills this week, marking the largest single sale for this maturity and an increase of $5 billion from the prior week. This unprecedented issuance highlights the significant borrowing needs of the federal government as it seeks to rebuild its cash balance following the recent debt ceiling increase. The Treasury is focusing on short-term securities to finance the federal budget deficit, partly due to high yields on longer-term debt, with expectations for further increases in bill auctions in the coming years. Alongside the $100 billion four-week bills, the government will also auction $58 billion of three-year notes, $42 billion of 10-year notes, and $25 billion of 30-year bonds, reflecting a broad effort to fund spending. The magnitude of these bill sales is substantial, exceeding a quarter of the United Kingdom's total bond sales for its 2024-2025 fiscal year. Analysts note that this trend signals growing reliance on short-term debt issuance through at least 2026.