subscribesubscriber servicescontact usabout ussite mapBuy a Classified
Mon, May 12 2008 

Published: April 30, 2008 03:41 pm    print this story   email this story   comment on this story  

Administration brings back one-year Treasury security

By Martin Crutsinger
Associated Press

WASHINGTON The Bush administration, moving to cope with soaring budget deficits, says it is bringing back the one-year Treasury bill that it stopped issuing seven years ago when the budget was in surplus.

The administration said Wednesday it would begin selling the one-year bill, also referred to as a 52-week bill, at an initial auction in June. New one-year securities will be auctioned every four weeks.

The government is looking for various ways to borrow the billions of dollars in extra cash it will need to cover a budget deficit that is expected to jump to an all-time high this year, surpassing the old mark of $413 billion set in 2004. Private economists are projecting that the deficit for this year could surge as high as $500 billion.

A big part of the increased borrowing reflects the need to pay for economic-stimulus rebates to 130 million households. The government began disbursing the payments on Monday in an effort to give the economy a jump start.

The government stopped issuing the one-year securities in February 2001, a year when the government recorded a surplus of $127 billion. That was the fourth consecutive surplus but was also the last time the government’s books were in the black. The budget was pushed back into the red by a recession, increased spending to fight wars in Afghanistan and Iraq and, Democrats contend, by President Bush’s first-term tax cuts.

The return of the one-year security was announced as officials reported the government’s borrowing needs for the current quarter, which will include separate auctions next week to raise $15 billion with the sale of 10-year Treasury notes on May 7 and $6 billion in the sale of 30-year Treasury bonds on May 8.

“Over the last several months, changes in economic conditions, financial markets and monetary and fiscal policy have impacted Treasury’s marketable borrowing needs,” said Anthony Ryan, Treasury’s assistant secretary for financial markets. “Financial market strains have impacted the real economy and the nation has experienced lower economic growth, lower receipts and increased outlays.”

Officials reported that the decision to lower the minimum amount that can be purchased at a Treasury auction to $100 had been a success, sparking increased demand. They said exact figures on the increase were still being compiled.

The Treasury Department began earlier this year allowing investors to purchase Treasury securities in amounts as low as $100 as a way of boosting demand among small investors. The reduction was the first since 1998, when the purchase minimum amount was reduced to $1,000.

print this story   email this story   comment on this story  

Click to discuss this story with other readers on our forums.



monster
wheels
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Premier Guide
Premium Jobs

Receptionist/Secretary
Receptionist/Secretary Position: Tebco of Kentucky, Inc. needs a full time, dependable,experienced person for the follow...>MORE

Housekeepers needed
Houskeeper needed.
Apply in person Jameson Inn 2006 Colby Taylor Dr
NO CALLS!
...>MORE

Fund Raising Associates Needed
Fundraising/TelemarketingPositions available for local nonprofit.Fun and challenging opportunity for highly motivated,pr...>MORE

Now Hiring Exp Roofers
EXPERIENCED
ROOFERS Needed.
Dependable, Will to work.
Call 623-6796, 582-5656.
...>MORE

Housekeepers
Hospice
Care Plus Inc

Housekeepers
needed for new
in-patient facility in Richmond, Ky
...>MORE


Customer Service
Representative
Needed: Home medical equipment company seeks Customer Service Representative
...>MORE

See all ads

Premium Autos

350 Yamaha Moto
350 Yamaha Moto. Excellent condition. 2 w/drive, 1998 Asking $1800 or best offer. 661-1787, 369-5560....>MORE

2007 Kawasaki
2007 Kawasaki ZX-10R.Ninja. 700 miles.
Adult Ridden.New Condition.$8800 OBO
859-661-0337
...>MORE

2007 Yamaha R6
2007 Yamaha R6.
2300 miles,$6900.
859-623-6482
...>MORE

See all ads

Premium Rentals


1 bdrm, apt. Utilities included. References required. No Pets. $350. mo plus deposit. 623-4786....>MORE

Argyll Sub-Div.
Argyle Sub-Div.
2br, Pets ok w/dep.
W/D hookup.
859-623-8924,
623-1049 or 321-5677
...>MORE

3 bdrm Trailer for rent
3 bdrm, trailer in country Waco. $500 mo + $500 dep. W/D hup. Large yard Call 859-661-1241....>MORE

See all ads

Deal of the Day

Everything from A-Z!!!
Need to sell your bedroom suite, washer and dryer, or even selling an animal? Call Mayme or Melissa at 859-624-6681 to p...>MORE

See all ads


 

Community Newspaper Holdings, Inc.CNHI Classified Advertising NetworkCNHI News Service
Associated Press content © 2008. All rights reserved. AP content may not be published, broadcast, rewritten or redistributed.
Our site is powered by Zope and our Internet Yellow Pages site is powered by PremierGuide.
Some parts of our site may require you to download the Flash Player Plugin.
View our Privacy Policy
Advertiser index

rc