WASHINGTON – The Treasury Department said Monday it will increase its debt auctions to handle the $700 billion rescue program for the country's financial system.
The Treasury said it would increase the size of its auctions in coming weeks and is considering other options to handle the financing needs for the biggest government bailout in history.
Treasury said one of the options being considered was the reintroduction of the three-year note beginning next month.
Congress gave final approval last Friday to the rescue measure. It authorizes the Treasury Department to spend up to $700 billion to buy distressed assets from banks and other financial institutions in an effort to thaw lending and keep the country from falling into a deep recession.
President Bush signed the bill shortly after it was passed in the House on Friday. Treasury Secretary Henry Paulson pledged to waste no time implementing it.
Treasury normally announces changes in its auction schedule at quarterly refunding news conferences four times a year. It said it was making the special announcement Monday to give market participants adequate notice of the changes that will be required to finance the $700 billion program.
The department said it will announce any changes in the timing for auctions at the next quarterly refunding news conference scheduled for Nov. 5.