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 meeting on Friday, April 30,
regarding the Treasury’s quarterly refunding.
I. Borrowing Estimates
Central Estimates Range that would not
surprise you
Low/High
April – June
Ending Cash Balance
July – September
Ending Cash Balance
FY 2010 Total Marketable Borrowing
FY 2011 Total Marketable Borrowing
II. Budget Deficit Estimates
FY 2010
FY 2011
FY 2012
III. Quarterly Note and Bond Issuance
Range
Point Estimate Mininum Maximum
3-year note (May/Jun/Jul)
10-year note (May)
10-year note reopening (Jun/Jul)
30-year bond (May)
30-year bond reopening (Jun/Jul)
2-year note (May/Jun/Jul)
5-year note (May/Jun/Jul)
7-year note (May/Jun/Jul)
10-year TIPS (Jul)
V. Bill Issuance Estimates
Range
Point Estimate Mininum Maximum
52-week bill size (May/Jun/Jul1/Jul2)
Total change in bills outstanding May ’10 – Jul ’10
Total change in bills outstanding FY 2010
CMB issuance May 10 Jul 10 (size/date)
DISCUSSION TOPICS:
1. Treasury indicated at the February refunding that debt managers
are contemplating a reduction in coupon sizes as the fiscal outlook
improves. How should Treasury accomplish such a reduction?
2. The Securities and Exchange Commission recently adopted
amendments to rule 2a-7 of the Investment Company Act of 1940. Please
discuss how these changes may impact the demand for Treasury bills and
any effects they may have on broader Treasury repo and cash market
functioning.
3. In February, Treasury announced that it is considering
increasing the frequency of TIPS auctions through the addition of a
second reopening of 10-year TIPS offerings. What considerations should
Treasury keep in mind if it decides to implement such a change? Going
forward, what other changes regarding TIPS issuance should Treasury be
evaluating?
** Market News International Washington Bureau 202-371-2121 **
[TOPICS: M$U$$$,MFU$$$,M$$FI$,MT$$$$,MAUDT$]
