WASHINGTON (MNI) – The Treasury Department’s August mid-quarter
refunding of $72.0 billion will raise $17.8 billion, Treasury announced
Wednesday.
For August, the Treasury Department said it will sell $32 billion
3-year notes on August 7, $24 billion in 10-year notes on August 8 and
$16 billion in 30-year bonds on August 9. Settlement for these issues is
August 15.
The Treasury said it “plans to develop a floating rate note (FRN)
program to complement the existing suite of securities issued and to
support our broader debt management objectives.”
It added, “The first FRN auction is estimated to be at least one
year away.”
Treasury said, it “expects the debt limit to be reached near the
end of 2012.” Extraordinary measures are expected to meet obligations
until early 2013.
Treasury also said, it “is in the process of building the
operational capabilities to allow for negative rate bidding in Treasury
bill auctions, should we make the determination to allow such bidding in
the future.”
For the third quarter of 2012, Treasury Monday estimated it will
borrow $276 billion, assuming a $60 billion cash balance on September
30.
For the fourth quarter of 2012, Treasury estimated it will borrow
$316 billion, with a $40 billion cash balance at the end of December.
The fourth quarter refunding announcement will be Wednesday,
October 31, 2012.
Below is a summary of the auctions announced Wednesday by the
Treasury:
(billions of dollars) Auction Settlement
Issue Total New Cash Date Date
————- ——– ——– ——– ———-
3-yr notes 32.000 — Aug 7 Aug 15
10-yr notes 24.000 — Aug 8 Aug 15
30-yr bonds 16.000 $17.8 Aug 9 Aug 15
** MNI Washington Bureau (202) 371-2121 **
[TOPICS: M$U$$$,MFU$$$,MCU$$$]
