“Treasury anticipates that the initial offering size of the 20-year bond will be $20 billion and that the auction will take place on Wednesday, May 20, 2020, at 1:00 p.m. EDT,” the statement said. “Treasury’s borrowing needs have increased substantially as a result of the federal government’s response to the COVID-19 outbreak.”
The statement added that since the end of March, Treasury has raised an unprecedented $1.464 trillion on net, resulting in its cash balance reaching historically high levels.
“Over the next quarter, Treasury’s cash balance will likely remain elevated as Treasury seeks to maintain prudent liquidity in light of the size and relative uncertainty of COVID-19-related outflows,” it said.
The Treasury said in a statement on Monday that it would borrow nearly $3 trillion this quarter to fund the US economy through the novel coronavirus (COVID-19) pandemic.
Both White House and private economists say the economy is expected to see even worse performance in the April to June stretch.