On Wednesday there will be an event more important than the US Federal Reserve meeting

Wednesday will bring news of the Federal Reserve's next rate decision.

On that day, a more significant event will take place at the US Treasury, rather than at the Federal Reserve.

This Wednesday, the US Treasury will present its strategy for refinancing the national debt.

Markets anticipate that the Federal Reserve will maintain the key rate on Wednesday, thus continuing the pause in the policy tightening cycle.

Prior to the Fed's rate decision, the Treasury Department will present its new borrowing plan, which investors will be paying close attention to, according to Bloomberg.

The US Treasury's quarterly refinancing announcement will show how much the department plans to increase the sale of long-term government bonds to cover the increasing budget deficit.

Yields on Treasuries have risen to their highest levels since the 2007-08 global financial crisis, resulting in increased costs for the government to service its debt.

Investors are eager to find out if the officials will keep up with the increased sales of long-term debt that was declared in the August plan. Moreover, the structure of the Treasury bond issue is of great significance.

Wells Fargo Securities noted that, due to the suspension of Fed rate hikes, market participants are now highly concentrated on primary issuance. As a result, the refinancing of government debt is a more significant event than the FOMC decision.

Fed Chairman Powell previously suggested that an increase in long-term Treasury yields could be equivalent to a rate hike.

In October, the Treasury Department released data showing that the U.S. federal budget deficit for fiscal year 2023 (ending in September) had almost doubled from the previous year, reaching a total of $2.02 trillion.

Fitch Ratings, in response to the deteriorating circumstances, downgraded the United States' credit rating from AAA to a lower rating prior to the August announcement of its borrowing plan.