Investors are focusing on the upcoming quarterly refunding announcement from the Treasury Department, as the financial industry prepares for another surprise regarding the magnitude of US debt.

The announcement will outline bond issuance strategies for the next three months, following concerns about the bond market’s capacity for acquiring additional Treasurys.

The release is attracting increased market attention due to a decline in investor demand for Treasury securities and the government’s increasing deficits.

The Department has indicated the need for further expansion of Treasury supplies, with Bank of America predicting an increase in auction sizes in November and gradual expansions over the next six months.

JPMorgan forecasts an increase in Treasury issuance due to the fiscal deficit for 2023 exceeding initial estimates by $100 billion and the Federal Reserve’s Quantitative Tightening persisting until 2024, resulting in a substantial funding deficit of $720 billion.