US: Treasury Refunding Announcement


Wed Aug 05 07:30:00 CDT 2015

Highlights
No surprises in the Treasury's quarterly refunding announcement, a $64 billion total that will pay down $3.2 billion. The refunding is split between $24 billion in 3-year notes, $24 billion in 10-year notes, and $16 billion in 30-year bonds. The Treasury notes that the approaching debt limit deadline in late October will likely depress its cash balance and that any related adjustments will be made in T-bill issuance.

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.