The Treasury Department announced on Wednesday to provide $126 billion to fund the government in upcoming auctions by adopting emergency measures to avoid extending the newly imposed debt limit.
Source: U.S. Department of the Treasury
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The Treasury announcement will see the $126 billion raised by auctioning 3 and 10-year notes and a 30-year bond, with the auctions occurring on Tuesday through Wednesday of the upcoming week.
Those auctions will generate money to meet debt-servicing requirements on $58.6 billion in Treasury notes and bonds that are due, plus close to $67.4 billion in new cash to keep the government afloat.
The US debt ceiling went back into effect on Aug 1st at $28.5 trillion after the debt level had risen since the debt limit was suspended for two years.
The suspension period has the annual federal deficit soaring to a record $3.5 trillion last year as the government approved trillion of dollars to support recovery from the pandemic.
The emergency measures the Treasury is looking to deploy involve book-keeping strategies to disinvest various government pension funds to free up more borrowing space while still under the debt limit.