• Try Forefield Advisor

  • Calendar

    April 2009
    S M T W T F S
    « Mar   May »
  • Categories

  • Archives

  • www.forefield.com

Hope someone keeps on picking up the tab…

It will be interesting to watch the U.S. Treasury auctions of $101 billion worth of 2-year, 5-year, and 7-year notes next week. It’s the 7th straight month that the amount to be auctioned off–read “borrowed”–has risen. And that $101 billion doesn’t include the $53 billion in 3- and 10-year notes already auctioned earlier in the month, T-bills, or the 30-year bond.

Looking strictly at the denominations to be auctioned next week, here’s what we’ve collectively borrowed in the last six months:

October: $58 billion

November: $62 billion

December: $66 billion

January: $70 billion

February: $94 billion (the big increase is the result of adding the new 7-year note)

March: $98 billion

Next week: $101 billion

What’s interesting to me is how consistently and quickly it’s been going up. Add the $184 billion worth of 3-year notes (which were introduced in November and which also have risen consistently by a billion or two each month) and the $119 billion of 10-years since last October, and that portion of the debt has more than doubled since October.

Throw in T-bills and the long bond, and as they say in Washington, now you’re talking about real money.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: