US Treasury to boost 10-year note sales as fiscal deficit swells (at Reuters)

By David Lawder WASHINGTON, July 25 (Reuters) - Faced with a swelling federal budget deficit as a slowing economy saps tax revenues, the U.S. Treasury is expected to boost the frequency of 10-year note sales and offer more 30-year bonds next month. Analysts estimate the Treasury will announce plans to sell $15 billion to $16 billion in 10-year notes and $9 billion to $10 billion in long bonds at its refunding announcment on Wednesday. "There's a realization that these higher deficits are going to be with us for a while because the outlook for growth in the second half and into next year has deteriorated," said Lou Crandall, chief economist at Wrightson ICAP in Jersey City, New Jersey. "It's an appropriate time for the Treasury to be locking in some longer-term borrowing." Analysts widely anticipate that the 10-year note... [read full story]