The US Treasury is set this Week to begin a Ramp-Up in Issuance of Longer-Dated Securities

The US Treasury is set this week to begin a ramp-up in issuance of longer-dated securities that’s likely to stretch into next year, forced by a rapidly deteriorating budget deficit and soaring interest rates.

Seems like Fitch is correct. Looks like the Treasury is short of cash.

“Berkshire bought $10 billion in US Treasuries last Monday. We bought $10 billion in Treasuries this Monday. And the only question for next Monday is whether we will buy $10 billion in 3-month or 6-month” T-bills, Buffett said on CNBC. “There are some things people shouldn’t worry about,” he said. “This is one.”

Fitch cut the US’s sovereign rating to AA+ from AAA earlier this week, citing the nation’s growing deficit and increasing political brinkmanship around the periodic efforts needed to raise the debt ceiling. The timing was apt — less than 24 hours later, the government boosted its quarterly borrowing plans for the first time in two-and-a-half years.