Treasury borrowing full steam ahead chart for more bonds data. By Charles Riley, staff reporter

NEW YORK (CNNMoney) -- The Treasury Department said Wednesday it will go ahead with plans to auction $72 billion in new debt next week as the federal government approaches its debt ceiling.

In a statement, Treasury said the new funds -- essentially loans from the public to the government -- would give the department's debt managers "a significant amount of flexibility" to respond to different financing scenarios.

The debt ceiling is currently set at $14.294 trillion. As of May 3, the debt subject to that limit totaled $14.280 trillion -- just $14 billion shy of the cap. But the total fluctuates up or down daily.

After the government hits the ceiling, it's not allowed to borrow, and could eventually default on its debt.

On Monday, Treasury Secretary Tim Geithner said the pace of borrowing is on track to hit the current debt ceiling by May 16. That's the same date next week's auctions will settle.

As U.S. debt approaches its ceiling, Treasury will use a set of what it calls "extraordinary measures" to prevent a debt limit breach.

On Friday, Treasury will make its first move. The department will suspend issuance of special Treasury securities that help state and local governments fund, among other things, infrastructure improvements.

But that will all stop on Aug. 2, 2011, the date Treasury says Congress must raise the debt ceiling by in order to prevent a default on U.S. obligations and a catastrophic economic calamity.

And as the Aug. 2 deadline approaches, Treasury might be forced to alter its auction schedule, Mary Miller, assistant secretary for financial markets, said in a statement.

Still, Miller said Treasury "is confident that a timely increase will be enacted this year." Confidence aside, Congress still has to act, and that means politics will soon take center stage.

In exchange for lifting the borrowing limit, Republicans are hoping to extract a promise of spending cuts, or put a cap on future spending in place. Democrats will push back hard.

What yields are doing: Treasury prices rose in early trading Wednesday, as investors reacted to disappointing economic data that pointed to slower-than-expected employment and manufacturing growth.

The 30-year yield ticked down to 4.33%, the 2-year yield declined to 0.60%, and the 5-year yield slipped to 1.94%.

The 10-year note's yield was at 3.22%. Bond prices and yields move in opposite directions. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
View rates in your area
Find personalized rates:
Index Last Change % Change
Dow 28,397.73 202.31 0.72%
Nasdaq 11,558.52 79.63 0.69%
S&P 500 3,453.25 26.33 0.77%
Treasuries .79 0.03 4.34%
Data as of 10:26am ET
Company Price Change % Change
Ford Motor Co 8.29 0.05 0.61%
Advanced Micro Devic... 54.59 0.70 1.30%
Cisco Systems Inc 47.49 -2.44 -4.89%
General Electric Co 13.00 -0.16 -1.22%
Kraft Heinz Co 27.84 -2.20 -7.32%
Data as of 2:44pm ET


Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.