Gov't will borrow $72B in debt auctions next week

[November 03, 2011]  WASHINGTON (AP) -- The government will borrow $72 billion in debt auctions next week as part of its quarterly funding process.

The Treasury Department says it will sell 3-year notes, 10-year notes and 30-year bonds to raise the funds. About a third of the proceeds will go to repaying debts that are due Nov. 15.

The department says it will continue to auction off similar amounts of longer-term securities in the future. In August, department officials had suggested they would reduce the size of some of their offerings.

The department now says it would be "prudent" to continue its current level of offerings, given the uncertainty surrounding the budget outlook.

More funding might be needed, for example, if President Barack Obama's jobs bill passes.

The government said on Monday that it will borrow a total of $305 billion in the October-December quarter. The rest of the borrowing will be done through other types of securities.

The estimate for the current quarter is $19 billion higher than it was three months ago. Treasury officials said lower-than-expected tax receipts led to the higher borrowing needs.

That figure will rise to $541 billion in the first three months of next year. That will be the second-highest quarter of borrowing on record.

[Associated Press; By CHRISTOPHER S. RUGABER]

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