Roll Over Plan: Treasury Needed to Pay Off Record $7.5T in Maturing Debt in FY 2013, Issued $8.3T New Debt; Increased Net Debt $777B -
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| jack lew--treasury secretary |
(CNSNews.com) The U.S. Treasury needed to pay off a record of approximately $7,546,726,000,000 in maturing Treasury securities in fiscal 2013, which ended last Monday, according to Treasury's official accounting. During the same period, the Treasury turned around and issued another $8,323,949,000,000 in new Treasury securities.
The spread between the old debt held by the public that matured and was paid off during the fiscal year and the new debt that was sold to cover government spending over and above tax revenues, increased the net federal government debt held by the public by $777.223 billion during the fiscal year. In the previous fiscal year, 2012, the Treasury had needed to redeem only $6,804,956,000,000 in Treasury securities, but then it needed to turn around and issue $7,924,651,000,000 in new securities—increasing the net debt held by the public by $1.119695 trillion.
The Treasury was forced to redeem a record amount of old debt in fiscal 2013, even though the debt did not increase as much as it had in fiscal 2012, because a large portion of the debt is composed of shorter-term Treasury bills and notes, for which the government can pay a lower interest rate than it would need to pay on longer term Treasury bonds. Treasury bills have maturities of anywhere from a few days to 52 weeks. Treasury notes have maturities of between two years and ten years. Treasury bonds have maturities of 30 years. And the Treasury also sells Treasury-Inflation Protected Securites (TIPS), which have terms of 5, 10 or 30 years. - See more at:
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