Bloomberg writes on "US Plans Record $​100 Billion Bill Sale as Borrowing Needs Mount." The article explains, "The US government plans to borrow $​100 billion in a single Treasury debt sale this week, an unprecedented figure that showcases both the magnitude of its borrowing needs and its ability to attract investors. The Treasury said on Tuesday that it will auction $​100 billion of four-​week bills on Thursday, a record for the maturity and an increase of $​5 billion from the previous week. The department has been boosting bill sales to rebuild its cash balance after the debt ceiling was lifted at the beginning of July." They quote Gennadiy Goldberg, head of US interest-​rate strategy at TD Securities, "The increase is just the start given Treasury'​s desire to focus on additional bill issuance in the coming quarters and years. So while markets will likely focus on the size, bill auction sizes are only likely to grow further in the coming years." Bloomberg says, "With cash flowing into US money-​market funds, which now hold about $​7.​4 trillion, there appears to be ample demand for the upsized bill sales, at least for now.... One potential complication for money-​fund managers is that the Federal Reserve is expected to lower interest rates again as soon as September. When rate cuts are seen as being on the horizon, as has been the case for months, the funds tend to extend the weighted average maturity of their holdings, favoring bills that will carry higher rates for longer." The piece adds, "Still, at this point there'​s little reason to worry about a broad decline in appetite for T-​bills on the part of money funds, given that even those that aren'​t Treasury-​only funds use the securities to help fulfill daily liquidity requirements, according to Peter Crane, president of Crane Data LLC."

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