US Treasury says debt auctions could be trimmed

By Martin Crutsinger

Associated Press

Published: Wednesday, May 1 2013 8:05 a.m. MDT

In this Oct. 10, 2008 file photo, the statue of Alexander Hamilton, the first Secretary of the Treasury, stands in front of the Treasury Department in Washington.

Evan Vucci, Associated Press

Enlarge photo»

WASHINGTON — The Treasury Department says it could begin decreasing the size of some of its debt auctions in coming months based on an improving deficit situation that will allow it to pay back some of the national debt this quarter.

Treasury said Wednesday that any decrease in the size of the Treasury securities it sells to raise money to finance government operations will be gradual and investors will be alerted to the changes. Treasury said for the current April-June quarter it plans to pay down $35 billion of the national debt, the first time it has reduced the debt in six years.

That pay down will be only temporary and reflects in part higher tax revenues in April. Treasury projected that borrowing will increase by $223 billion in the July-September quarter.

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