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SYDNEY, Feb 4 (Reuters) - Australia’s Government will sharply increase debt issuance to finance government spending promises after two rounds of economic stimulus packages that will push the country into a deficit for the first time in seven years.

The government said on Wednesday it plans to issue between $22 billion and $24 billion in Treasury debt between now and the end of June.

The rise could put upward pressure on bond yields, but economists said they are not deeply worried.

“It was widely anticipated that the budget deficit would necessitate further issuance, but it sounds like a lot,” said Adam Carr, a senior economist at ICAP in Sydney.

“There may be some concerns for what it means for bond yields, but if we bear in mind the billions of dollars the US is issuing every week, it gives a bit of perspective,” said Mr Carr.

“It’s not a lot of money in the global capital markets and I don’t think there will be too much trouble absorbing it.”

The government previously said it would issue $15.3 billion for the entire financial year to end June. However, due to its slow economy, the government is forced to increase its pledge to $42 billion in a second round of spending to avoid recession.

Full news at the Business Section The Age