This week will set the precedent for the amount of debt the United States Treasury will auction during a one week span. The previous record of $104 billion is expected to be doubled and then some, as an estimated $235 billion worth of varying treasuries comes to market this week.
There are many, including myself, who have a feeling this could lead to troubling woes in equity (stocks) markets, as the crowding out squeeze will come into full effect. Although this is expected to have an impact on forex markets, we will have to wait until it is all said and done, to derive the world sentiment on the faith in the dollar.
The article, and other commentary can be found here: Treasury Prices Fall Further On Debt Worries - Bonds and Treasuries * US * News * Story - CNBC.comThe Treasury launched a record week of debt auctions Monday by selling $6 billion of 20-year inflation-protected securities, or TIPS, at a high yield of 2.387 percent.
But investors remain worried that the global market may have difficulting digesting the $211 billion of debt to be sold this week.
The TIP sale, which was expected to do well, had a record bid-to-cover ratio—which measures how much the auction is oversubscribed—of 2.27.
Monday's auction will be followed by the sale of $42 billion of 2-year notes Tuesday, $39 billion of five-year notes Wednesday and $28 billion of seven-year notes Thursday.
In addition to the note auctions, the Treasury will also sell shorter-term bills, which could bring to over $200 billion the total amount of U.S. debt to be auctioned this week.