Reasons For The Decrease In The Issuance Of National Debt

The reduction in the issuance of US Treasury bonds may help alleviate people's concerns about the upcoming Taper.

The slowdown in the pace of quantitative easing is usually detrimental to the price of U.S. Treasuries because the demand for debt purchases from the Federal Reserve has decreased. As the Treasury Department reduces issuance, the reduction in supply helps offset the downward pressure on prices caused by reduced demand.

The analysis believes that although the borrowing needs of the Treasury Department depend to a certain extent on the two long-term fiscal plans implemented by Congress in the next few weeks, the US budget deficit is currently on a downward trend, which has changed the large-scale auction of Treasury bonds used to raise funds during the epidemic. It's no longer necessary.