WASHINGTON (MNI) – The Treasury Department’s February mid-quarter
refunding of $72.0 billion will raise $22.4 billion, Treasury announced
Wednesday.
For February, the Treasury Department said it will sell $32 billion
3-year notes on Feb. 7, $24 billion in 10-year notes on Feb. 8 and $16
billion in 30-year bonds on Feb. 9. Settlement for these issues is Feb.
15.
The Treasury said it expects to keep note and bond auction sizes
“stable” over the coming months and that it will address the expected
increase in borrowing needs ahead of the tax season by increasing bill
auction sizes and by issuing cash management bills.
Treasury also said it expects to continue a gradual increase in
TIPS issuance this year, likely in the 5-year and 10-year maturities.
It also plans to announce a decision on Floating Rate Notes at the
May refunding and may also decide then on negative yields at auctions.
For the first quarter of 2012, Treasury Monday estimated it will
borrow $444 billion, assuming a $30 billion cash balance on March 31.
For the second quarter of 2012, Treasury estimated it will borrow
$200 billion, with a $90 billion cash balance at the end of June.
The second quarter refunding announcement will be Wednesday, May 2,
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 — Feb 7 Feb 15
10-yr notes 24.000 — Feb 8 Feb 15
30-yr bonds 16.000 $22.4 Feb 9 Feb 15
** Market News International Washington Bureau (202) 371-2121 **
[TOPICS: M$U$$$,MFU$$$,MCU$$$]
