US Bond Market Takes Looming Treasuries Deluge in Stride

US Bond Market Takes Looming Treasuries Deluge in Stride
Sheets of freshly printed 20 USD notes cut into bills before bundling at the US Treasury's Bureau of Engraving and Printing in Washington, DC July 20, 2018. EVA HAMBACH/AFP/Getty Images
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NEW YORK—U.S. government debt supply will likely continue to boom, but bond market investors seem to be taking it in stride.

The Treasury Department is having to sell more debt to finance the government’s ballooning deficit, stemming from the massive federal tax overhaul in December and the spending deal passed in February. Still, bond yields have remained in a narrow range, suggesting investors may not be fretting about the swelling debt supply.