Treasury Plans Record Debt Sale

It has been a long time, but the U.S. Treasury is bringing back the 7-year note. Yesterday the yield on the 10-year note rose to 2.95 percent from just 2% at the end of December 2008, indicating that it’s getting harder to sell U.S. debt. Sale of 30 year Treasury Bonds will double to 8 times/year.

For the Obama administration, the step-up in borrowing costs comes as it is fighting to secure an $800bn-plus fiscal stimulus, and will probably need many hundreds of billions more to fund a banking sector clean-up.