WASHINGTON (MNI) – The following is the text of the request for
estimates from primary dealers released Friday by the U.S. Treasury that
was sent to primary dealers ahead of their meetings on July 30 before
the Treasury’s quarterly refunding. Responses are due prior to 5:00 p.m.
on July 26. The refunding announcement is scheduled for Wednesday,
August 4:
I. Marketable Borrowing Estimates
Central Estimates Range that would not
Surprise You
July-September
Ending Cash Balance
October-December
Ending Cash Balance
FY 2010 Total Marketable Borrowing
FY 2011 Total Marketable Borrowing
II. Budget Deficit Estimates
FY2010
FY2011
FY2012
III. Quarterly Note and Bond Issuance Estimates
3-year note (Aug/Sep/Oct)
10-year note (Aug)
10-year note reopening (Sep/Oct)
30-year bond (Aug)
30-year bond reopening (Sep/Oct)
2-year note (Aug/Sep/Oct)
5-year note (Aug/Sep/Oct)
7-year note (Aug/Sep/Oct)
30-year TIPS reopening (Aug)
10-year TIPS reopenning (Sep)
5-year TIPS reopenning (Oct)
IV. Bill Issuance Estimates
52-week bill size (Aug/Sep/Oct)
Total change in bills outstanding Aug ’10 – Oct ’10
Total change in bills outstanding FY 2010
CMB issuance Aug ’10 – Oct ’10 (size/date)
DISCUSSION TOPICS:
1. Please discuss your latest economic and fiscal forecasts for
the remainder of FY2010 and FY2011. Do you believe the current financing
schedule is well-suited to meet Treasury’s financing needs through the
end of FY2011?
2. Please comment on the drivers of the recent decline in
Treasury yields. What are the sources of demand for longer-dated
coupon-bearing securities and STRIPS?
3. Please describe the market dynamics in the front-end of the
yield curve. Comment on the ongoing demand for short-duration
securities, as well as the supply of products that compete with
Treasuries. Given your outlook on supply and demand, are there any
changes Treasury should be considering to bill issuance?
4. As part of Treasury’s ongoing commitment to the TIPS program,
are there any changes Treasury could make to enhance auction demand and
improve secondary market liquidity? Furthermore, are there calendar- or
issuance-related changes Treasury should consider to the TIPS program?
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: M$U$$$,MFU$$$,M$$FI$,MT$$$$,MAUDT$]
