US debt-cap row to restrain auction sizes even as deficit grows

With the Treasury constrained from what it can do thanks to hitting the debt ceiling in January, dealers aren’t expecting much from today’s quarterly refunding announcement

The United States Department of the Treasury building, Washington DC. Picture: Getty

The US Treasury is facing the need for increasing issuance of longer-term securities this year as the budget deficit worsens, but for now its plans are frozen by the partisan standoff in Washington over raising the debt limit.

This Wednesday’s so-called quarterly refunding announcement — at which the Treasury Department outlines its issuance plans for longer-term securities — is likely to be the third in a row without any change to the slate of coupon-bearing ...