13 February 2002, 13:27  US Budget:Rising Govt Spending Could Mean Yet More Tsy Supply

Bond market players may be more focused on the speed of economic recovery just now, but rising government spending and the return to deficits could force supply concerns back to the forefront by the summer, analysts said. And while a big-ticket stimulus bill is probably not in the cards, a defense and domestic security supplemental spending request for FY2002 is probable, congressional observers agree. "Enacting the supplemental will make the Bush budget's estimates and projections even less meaningful," one analyst said. Election year and political realities may raise the bottom line, analysts said. //MarketNews

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