US Government Debt Issuance Hits $797 Billion as Yields Soar

The US government sold $797 billion of Treasury securities this week, marking a significant increase in debt issuance. The auctions were spread over ten days, with $562 billion being T-bills and $235 billion being Treasury notes. Most of these sales replaced maturing T-bills.

On Friday, the 3-year Treasury yield spiked by 11 basis points to 4.41%, its highest since January 2025. The 2-year Treasury yield also rose by 14 basis points to 4.34%, its highest since July 23. This increase in yields was due to Fed Chair Warsh refusing to ease market concerns.

Bessent's attempts to manipulate the bond market through Hocus-Pocus shows failed, as yields continued to rise. The 30-year Treasury yield rose to 5.22%, its highest since 2007, while the 10-year Treasury yield jumped by 6 basis points to 4.73%.

Despite the rise in yields, bond buyers are still expecting inflation to average 2.25% over the next 30 years, according to the difference between the 30-year Treasury bond yield and the 30-year Treasury Inflation Protected Securities (TIPS) yield.