Treasury Expects to Issue Over $ 1 Trillion in Debt in 2018

The Treasury said Monday it expects net marketable debt to total $ 425 billion in the fourth quarter, which would bring total debt issuance in 2018 to $ 1,338 trillion, compared with $ 546 billion in 2017. That would be the highest annual debt issue since $ 1,586 trillion in 2010 when the US economy was still crawling out of a recession.

The Treasury's fourth-quarter borrowing estimate of $ 425 billion is $ 15 billion less than it was estimated in July. That would be the most important of all, but the figures could be volatile from quarter to quarter. The Treasury also plans to borrow $ 356 billion in the first quarter of 2019, compared with $ 488 billion in the first quarter of 2018.

Rising federal budget deficits are boosting the Treasury's borrowing and could restrain economic growth as well.

The Treasury said earlier this month the deficit grew 17% in the fiscal year that ended Sept. 30, amid higher spending and sluggish tax receipts, which a senior Treasury official charged to tax the exchange rate late last year.

The deficit is headed toward $ 1 trillion in the current fiscal year, the White House and Congressional Budget Office said. The Office of Management and Budget projects is likely to run trillion-dollar deficits for the next four years.

The rising supply of debt, but many factors affecting rates, including Federal Reserve decisions, the inflation outlook and shifting investor appetite.

The Treasury said last month it would increase US $ 30 billion through the end of this month. The Treasury gets cash to the government in exchange for selling the securities.

The Treasury will release new details on its financing plans Wednesday.

The higher debt issuance comes from the Federal Reserve in the years since the financial crisis. Fed officials lifted their benchmarks federal-funds rate to 2% and 2.25% in September, and have increased in this area.

Chairman Jerome Powell Fed Chairman Jerome Powell, Chairman of the Board of Trustees

"Every time we do something, he raises rates. Now, what does that do? What we pay more on debt, right? That's the way we pay for the economy, both bad things, "Mr. Trump said in an interview with The Wall Street Journal.

Mr. Trump said he would rather keep rates low and "pay amortization," meaning pay down debt. Treasury estimates show the government is getting more money, with the government than it did last year.

-Nick Timiraos contributed to this article.

Corrections & Amplifications
The U.S. Treasury Department expects total debt issuance in 2018 of $ 1,338 trillion, which would be the highest issuance since $ 1,586 trillion in 2010. An earlier version of this article incorrectly stated figures in trillions. (Oct. 29, 2018)

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