US Treasury's bid to avoid debt-sale surprises made trickier by Fed
Washington
THE US Treasury Department's debt-management unit likes sticking to one rule: Don't surprise the market. The Federal Reserve is about to make that task trickier.
For years, the US central bank has been the Treasury's best customer, accumulating US$2.46 trillion in US debt through its cash injections aimed at stoking a recovery from the worst recession since the 1930s. That's about to change as the Fed prepares to raise interest rates from near-zero, followed by a planned decision to let its balance sheet shrink at some point.
The risk is that once the Fed decides to stop reinvesting its maturing Treasuries into newly-issued debt, the Treasury would have little time to recalibrate its quarterly sale known as a r…
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