A deluge of Treasury bill issuance is coming. How it could impact stocks and the broader market

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A roughly $1 trillion deluge of debt-ceiling Treasury issuance is expected to start flowing later this week. Will it derail stocks? Here's a chart showing...

Investors are bracing for an estimated $1 trillion deluge of Treasury issuance to start flowing later this week and continue in the coming months as part of the latest debt-ceiling resolution.

Heavy supply of fresh Treasury debt will refill government coffers run low by another protracted fight in Washington over the U.S. borrowing limit. But it won’t necessarily derail stocks, or the broader market, according to a team of analysts at CreditSights. “In our view, broad market concerns about T-bill issuance are overblown,” Cisar’s team said, adding that the “upswing in supply,” by itself, isn’t enough for the team to change its constructive view on corporate credit.

While that was slightly below the $550 billion Treasury target expected by Barclays interest rate strategist Joseph Abate.

 

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