According to UBS Securities LLC, one of the 21 primary dealers that underwrite Treasury auctions, the government’s auctions of bills, notes and bonds in the fiscal year that started this month may increase more than 50 percent to $220 billion. The first drop in corporate tax revenue since 2003 increased the shortfall by 12 percent to $162.8 billion for the year ended in September, from $144.8 billion in the 12 months through April.
Deficit Expands, May Prompt Rise in Treasury Sales
For the first time in three years, sales of U.S. Government Treasuries may possibly increase as the U.S. federal budget deficit expands, resulting in putting at risk what has been the biggest bond rally in five years.
Published on October 15, 2007
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