The Treasury paid down $78 billion in outstanding bill, note and bond supply in the period April 6 through May 11, thanks to its cash windfall from April tax collections. The Treasury collects more than it spends in April and May. It then uses some of that to pay down existing debt. Holders of the expiring paper get cash back. They then reinvest in other paper, both short and long term fixed income and equities.
No More Sales of New Treasury Debt- Here's What It Means
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.