WASHINGTON (MNI) – The Treasury Department’s May mid-quarter
refunding of $78.0 billion will raise $47.1 billion, Treasury announced
Wednesday.
For May, the Treasury Department said it will sell $38 billion
3-year notes on May 11, $24 billion in 10-year notes on May 12 and $16
billion in 30-year bonds on May 13. Settlement for these issues is May
17.
The Treasury also announced it will add a second reopening to
10-year Treasury Inflation Protected Securities starting with the July
note. The July new issue will be reopened in September and November. The
January 2011 new issue will be reopened in March and May 2011.
Treasury added it “expects to gradually decrease coupon auction
sizes,” retaining the flexibility to do so across the nominal yield
curve.
For the second quarter of 2010, Treasury Monday estimated it will
borrow $340 billion, assuming a $280 billion cash balance on June 30,
which includes $200 billion for the Supplementary Financing Program
(SFP).
For the third quarter, Treasury estimated it will borrow $376
billion, with an $270 billion cash balance at the end of September, also
assuming $200 billion for the SFP.
Treasury is expected to offer cash management bills during the
quarter.
The third quarter refunding announcement will be Wednesday, August
4, 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 38.000 — May 11 May 17
10-yr notes 24.000 — May 12 May 17
30-yr bonds 16.000 $47.1 May 13 May 17
** Market News International Washington Bureau (202) 371-2121 **
[TOPICS: M$U$$$,MFU$$$,MCU$$$]
