U.S. budget deficits are expected to grow sharply over the next few years, and bond dealers are preparing for a big increase in debt sales by the Treasury Department as result.
Debt issuance is expected to double in 2018 on a year-over-year basis, to more than $1 trillion, the highest level since 2010, according to Bloomberg.
All that extra debt should drive bond prices lower and interest rates higher, as the Treasury seeks to attract investors.