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Tide of U.S. Debt Set to Recede

Reduction in issuance of T-bills and other Treasury debt will counter the effect of the Fed's impending taper of asset purchases.

By Liz Capo McCormick | August 02, 2021 at 05:48 PM

For the first time in more than five years, the U.S. Treasury will soon be scaling back its mammoth quarterly sales of notes and bonds, Wall Street dealers say. The shift will be so large it’s likely to more than counter the Federal Reserve’s looming reduction in asset purchases.

The Treasury Department on Wednesday will announce its so-called quarterly refunding of longer-term securities, when it typically lays out any coming changes to debt-issuance strategy. While most dealers expect no change in the $126 billion size of recent refundings, many see officials setting the stage for a reduction, perhaps starting in November.

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