Summary

The US Treasury issues debt to finance federal budget deficits. Given the large cumulative total of the deficits over time, the total amount of debt is large. The Treasury has a serious task to issue debt to cover new deficits and roll over the maturing debt from previous deficits. Given the magnitude of Treasury operations, the impacts on interest rates can be considerable. Other large issuers of securities include government-sponsored enterprises, municipalities, mortgage issuers, and corporations.