"After having to swallow a record $200 billion in new debt in just three days, the market for Treasurys is anxiously awaiting news this week on how much more is coming its way.
The Treasury Department is scheduled to issue a quarterly update Monday about its forthcoming borrowing needs. Wednesday, it will announce a series of auctions to be held next week, this time for three-year, 10-year and 30-year notes and bonds.
Few doubt the numbers will again be big, as the government seeks to finance a record budget deficit and to fund a continuing effort to stimulate the recession-bound economy.
The Treasury announcements are "going to set the tone for any new debt, to show how they are going to deal with the massive amount they still have to sell," said Jim Vogel, a strategist at FTN Financial.
Mr. Vogel said the large two-year, five-year and seven-year auctions "caught people off guard" last week.
Both the two-year and the five-year auction saw big declines in their bid-to-cover ratios and a drop in indirect bidders, which stoked fears that foreign central banks are losing interest in buying Treasurys. Such concerns could be heightened by the dollar, which dropped sharply Friday....
