Tidal wave of U.S. Treasury securities coming?

I was just reading the fact sheet for the U.Treasury "rescue" plan (Proposed Treasury Authority to Purchase Troubled Assets) and I see that it says that "Treasury will have authority to issue up to $700 billion of Treasury securities to finance the purchase of troubled assets. " That is a large boat-load of Treasuries to flow into the bond market. OTOH, based on the fact that demand for T-bills alone pushed the yield for a 3-month T-bill down to 1.07% on the most recent weekly auction last week, I would say that there is an excellent chance that the Treasury will have no problem finding buyers at very reasonable rates. OTOH, if Treasury does have trouble, that would push rates up and give us investors a great opportunity to get great yields at very lost risk.

-- Jack Krupansky