Balanced Budgets and Loan Financing

[ACSLKS@xxxxxxxxxxxxxxxx id <01HMVZLECTYQ8Y6RLT@xxxxxxxxxxxxxxxx>; Fri, 10 Feb 1995 15:00:18 -0400 (EDT)]

I have a question for the financially adept amonst us.  If the federal budget
must be balanced annually, then does this mean that there will be no new
Treasury security issues?? (except, perhaps, for rollovers)  This would imply a
perfectly inelastic supply curve for Treasury offerings at a fixed quantity
which would leave price and yield to be determined by demand.  Would this
scenario have any effect on financial markets??

Lonnie K. Stevans