Treasury auctions are facing scrutiny due to recent signs of stress in the government bond market. The U.S. plans to raise higher levels of capital in fixed-income markets next year. In October, yields reached 16-year highs as interest rates increased and foreign buyers decreased, leading primary dealers to request lower prices for Treasury auctions. During a November auction, primary dealers had to take up a larger percentage of the supply than usual. This week’s auctions had solid demand, but the yield demanded by investors was slightly higher than expected. Yields have come down since October, causing prices to rise. The government is expected to issue a record amount of debt in 2024, and this will likely stress-test demand for Treasuries. Additionally, there are fewer buyers as foreign buyers have reduced their exposure to Treasuries.