Barclays: Expect US debt issuance to remain "flat" for two consecutive years

Odaily Planet Daily News: Barclays Bank interest rate strategist predicts in a research report that the U.S. Treasury will maintain the issuance scale of interest-bearing bonds in the next quarter and throughout the 2026 fiscal year. Analyst Dhiraj Narula pointed out that this forecast is consistent with previous policy guidance, indicating that since the last increase in issuance from February to April 2024, the debt issuance scale has remained stable for exactly two years. Narula emphasized in the report that the underlying fiscal situation in the U.S. remains severe. He noted, “An annual deficit close to $2 trillion continues to put pressure on the U.S. Treasury’s debt issuance.” Although the scale is currently expected to remain unchanged, Narula warned that the U.S. Treasury indicated last November that it had “begun preliminary considerations of increasing” auction sizes in the future. Therefore, the upcoming quarterly refinancing announcement may reveal the latest developments of these expansion plans. (Jin10)