Treasury bond supply could soon hit record levels as unsustainable deficits and high rates create spiral effect, Bank of America says

• Treasury bond issuance could reach record highs in 2024, Bank of America said.
• Analysts raised their estimate for the supply of longer-dated debt that's on the way.
• "A daunting supply picture becomes even more challenging given the backdrop of higher financing costs."

Treasury bond issuance could reach a record high in 2024, as elevated interest rates will aggravate US deficits, Bank of America said in a Wednesday report.

That prompted analysts to raise their estimate for the supply of 10-year equivalents to be around $1.34 trillion, or $90 billion higher than previously estimated.