Refund: As part of its regular quarterly refund, the Treasury announced next week that it will sell $ 126 billion in bills and bonds. This is an increase from $ 122 billion in the previous quarter.
The division issues $ 58 billion in 3-year government bonds
February 9, $ 41 billion 10-year bond
February 10, and $ 27 billion 30-year bond
Big picture: The Treasury has stabilized the size of nominal bonds and note auctions as the Biden administration and Democrats urged a $ 1.9 trillion financial bailout bill.
Prior to the announcement of the refund, it was unclear whether the Treasury should reduce the size of its bond auction as a Treasury reduced borrowing estimate, Published on Monday, Congress did not consider the possibility of passing a future financial assistance package. It will spur additional debt issuance.
Given the uncertainties about how much more financial relief will come from Washington, market participants argued that the Treasury would maintain record auction size to maintain flexibility.
Future auction cycle adjustments were made to the sale of floating rate notes and Treasury inflation protection securities.
The Treasury also said it would instead rely on the issuance of short-term bills to fund unexpected changes in borrowing.
Increased floating rate bond auctions: The Treasury said it would increase the size of its two floating rate note auctions in February and March from $ 2 billion to $ 26 billion, respectively.
Inflation-indexed bonds increase: The Treasury said it would gradually increase the size of the TIPS auction by $ 1 billion each in January, February, March and April sales.
What did they say? Jim Vogel, interest rate strategist at FHN Financial, feels that investors are “sufficient in debt, even if they need to borrow for additional stimulus,” due to the lack of reaction in the bond markets. Was suggested.
The US Treasury recorded a $ 126 billion refund next week, an increase of $ 4 billion from the previous quarter.
http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D25728388173%7D&siteid=rss&rss=1 The US Treasury recorded a $ 126 billion refund next week, an increase of $ 4 billion from the previous quarter.