Treasury Plans Record Auction of Notes, Bonds
The Treasury announced plans Wednesday to borrow $37 billion from the public next week in a series of debt auctions. It would set a record for quarterly borrowing.
“We are offering $37 billion of notes and bonds to refund $19 billion of privately held notes maturing on May 15 and to raise about $18 billion of cash,” Deputy Assistant Secretary Michael E. Basham told reporters.
The offering would surpass the $34.5 billion in securities sold at the last auction Jan. 30.
Basham said the additional funds would be needed to offset a drop in receipts and additional expenditures by the Resolution Trust Corp., the government agency set up to handle the savings and loan bailout.
Although he declined to say what caused the drop in receipts, he said “the recession has to be one of the prime candidates.”
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
