Good news "arrives" in the US economy, less debt and more bond sales

The US Treasury Department said it estimates it will borrow about $760 billion from January to March 2024, down from the $816 billion forecast made in October 2023.

The US economy received much good news in January 2024. (Source: Twitter)

The US Treasury Department estimates that its cash balance at the end of March 2024 will remain at $750 billion while borrowing needs will be lower due to higher expected net financing flows and more available cash than expected.

Meanwhile, the number of bonds sold by US companies increased to a record level in January 2024.

Large-cap and well-established companies have sold $188.57 billion in US bonds since the start of January 2024, as companies seek to take advantage of falling long-term borrowing costs.

The sales surpassed the previous record of about $175 billion in January 2017. With more sales through the end of January, some experts believe companies could sell as much as $200 billion in bonds this month.

Still, January 2024 sales are still below the record high of $285 billion in April 2020.

Bond sales have surged after investors grew increasingly confident that the US Federal Reserve is not expected to raise interest rates again at its policy meeting later this month to curb inflation and could soon start cutting, sending bond yields lower and reducing borrowing costs for companies.

The average yield on a bond with a maturity of 10 years or more fell to 5.44% on January 26, from 6.6% in mid-October. Given the situation, many investors want to buy longer-term corporate bonds and lock in yields before they fall further.

Previously, the US Department of Commerce also announced that the country's Gross Domestic Product (GDP) for the whole year of 2023 will reach 2.5%, up from 1.9% in 2022.

Consumers are seen as the main driver behind this strong growth, with their spending rising 2.8% annually in the final quarter of 2023.

Source: https://baoquocte.vn/loat-tin-vui-cap-ben-kinh-te-my-vay-no-it-hon-va-doanh-so-ban-trai-phieu-nhieu-hon-259307.html