As reported in Investing.com, the U.S. Treasury announced on July 28 its net borrowing plan for the third quarter: $1.007 trillion! This is twice the previous estimate, made in April, of third-quarter borrowing. The report from Bloomberg News that morning had said that dealers “expected it,” as if that meant it was no problem!
More serious for Treasury market volatility and instability. Most of this borrowing will be by issuance of Treasury bills, of one-year maturity or less; that is, very short-term, the meat of hedge fund and money market fund speculation through derivatives trading on the Treasury market.
