(Reuters) - The U.S. Treasury Department said on Thursday it will sell $28 billion of one-year bills next Tuesday, a record auction size for this government debt maturity, as it ratchets up its short-term borrowing to replenish its cash holdings.
It also said it will sell $42 billion in three-month bills, the most since April, on Monday and $42 billion in six-month bills, the most since October 2018.
The government’s cash had been dwindling before U.S. President Donald Trump and federal lawmakers reached a two-year spending deal that allows for more borrowing to meet its obligations.
On Tuesday, the government ended the day with $129.18 billion in cash, compared with $423 billion at the end of April.
The Treasury would issue anywhere from $100 billion to $200 billion in additional T-bill supply, beginning in August in an effort to increase federal cash holdings to $350 billion by the end of September, analysts said.
The Treasury was scheduled to sell a record $40 billion in two-month bills and $50 billion in one-month bills on Thursday.
Reporting by Richard Leong; Editing by Dan Grebler