As U.S. debt soars past $38 trillion, the flood of corporate bonds is a growing threat to the Treasury supply

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As the Treasury Department looks to ensure investors continue absorbing the fresh supply of debt it must sell, growing competition from companies issuing their own bonds could send rates higher, according to Apollo Chief Economist Torsten Slok.

In a note on Saturday, he pointed out that Wall Street estimates for the volume of investment grade debt that’s on the way this year reach as high as $2.25 trillion.