NEW YORK, Reuters The U.S. Treasury is likely to boost the size of auctions for bills, notes, and bonds in the fourth quarter when it announces its financing plans this week to fund a worsening budget deficit, analysts said.

Investors are playing close attention to this week39;s quarterly refunding announcement as a sharp jump in longterm Treasury yields has been partly attributed to concerns about the U.S. fiscal deficit. Since the end of July, the 10year yield has climbed more than 100 basis points.

The market has associated the rise in Treasury yields with deficit concerns and reflects worries about the sustainability of those deficits, said Guneet Dhingra, managing director and head of U.S. rates strategy at Morgan Stanley in New York.

The budget deficit is increasing due to several factors, including higher federal government borrowing costs arising from the Federal Reserve39;s interest rate increases and quantitative tightening.

Analysts at TD Securities expect the deficit to expand to 1.85 trillion in 2024 from 1.69 trillion this year and projects another 677 billion of bills that mature in a year or less coming to market and about 1.7 trillion in notes and bonds. So far this year, the Treasury has issued about 1.6 trillion of additional bills and roughly 1.04 trillion in longerterm debt.

The spotlight will also be on Monday39;s announcement of borrowing estimates for the fourth quarter and the first quarter of 2024. It was the announcement on July 31 of…