Definition of 'Treasury Budget'
The annual fiscal year begins in October and changes in the budget balance are followed as an indicator of budgetary trends and the impact of fiscal policy.
Budget deficits and surpluses are watched closely because they will directly impact the issuing of T-Bills,T-Notes, T-Bonds. If the federal government is running a deficit then more treasuries will need to be issued to finance this deficit which will increase the supply of treasuries and theoretically reduce the demand. Conversely if there's a budget surplus then the supply of treasuries should shrink causing an increase in bond prices as supply falls relative to a constant demand.
Check the Economic Events Calendar to see if this or other announcements are taking place in the next 5 days.
Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 25 bonus reputation points for each definition that is accepted.
Is this definition wrong? Let us know by posting to the forum and we will correct it.