WASHINGTON (MNI) – The Treasury Department’s August mid-quarter
refunding of $74.0 billion will raise $41.0 billion, Treasury announced
Wednesday.
For August, the Treasury Department said it will sell $34 billion
3-year notes on August 10, $24 billion in 10-year notes on August 11 and
$16 billion in 30-year bonds on August 12. Settlement for these issues
is August 16.
The Treasury also announced it is “considering additional
reopenings of TIPS offerings,” with any decision on the 2011 TIPS
auction calendar expected at the November 3 refunding.
Treasury also said it “expects to continue to decrease coupon
auction sizes” at a more gradual pace. “The ultimate magnitude of
offering size reductions will depend on the pace and extent of the
economic recovery.”
A Treasury official told reporters that once the reductions are
complete, it will pause “at some point” to reassess borrowing needs in
relation to the fiscal outlook.
For the third quarter of 2010, Treasury Monday estimated it will
borrow $350 billion, assuming a $270 billion cash balance on Sept. 30,
which includes $200 billion for the Supplementary Financing Program
(SFP).
For the fourth quarter, Treasury estimated it will borrow $380
billion, with an $270 billion cash balance at the end of December, also
assuming $200 billion for the SFP.
Treasury is expected to offer cash management bills during the
quarter.
The fourth quarter refunding announcement will be Wednesday,
November 3, 2010.
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 34.000 — Aug 10 Aug 16
10-yr notes 24.000 — Aug 11 Aug 16
30-yr bonds 16.000 $41.0 Aug 12 Aug 16
** Market News International Washington Bureau (202) 371-2121 **
[TOPICS: M$U$$$,MFU$$$,MCU$$$]
