US: Treasury Refunding Announcement


Wed May 06 07:30:00 CDT 2015

Highlights
No surprises in the Treasury's quarterly refunding announcement, a $64 billion total split between $24 billion in 3-year notes, $24 billion in 10-year notes, and $16 billion in 30-year bonds. The Treasury plans to stick to current coupon sizes through the second quarter. The Treasury also said it plans to test small buybacks.

Definition
Each quarter the U.S. Treasury announces its funding needs for the next two quarters. The announcement includes which securities will be offered and the dates of their announcement, auction and settlement.

Description
Bond market players pay attention to this release so that they know the degree of looming supply of Treasuries coming onto the market so that they can evaluate what appropriate yields might be for trading. Heavy supply coming onto the market suggests higher yields.