The federal government must issue more debt than it expected as cash flow weakens, and ‘the bond market is shouting’

The Treasury Department announced this week that it expects to borrow more than anticipated in ‌the current quarter as incoming cash flow has been weaker than initially projected.

The $189 billion now estimated for the April-June quarter is $79 billion more than what Treasury saw in February. And after adjusting for a larger-than-expected cash balance at the start of the quarter, the new borrowing guidance is actually $122 billion higher.

With tax-filing deadlines coming in April...