Query comes in reaction to increased funding needs as deficits soar
- US treasury has asked primary dealers of treasury should consider technical adjustments to treasury coupon auction schedule given increase in financing needs
- As dealers for opinion on market reception of frequent cash management bill issuance
- As dealers for opinion on how large benchmark T-bill auction sizes could rise to without causing yield deviations
- as dealers if it should consider expanding benchmark bill offerings to include 1 of the CMB maturities and if so which one
In short, how much do you think we can auction before we see higher yields as a result of not enough demand for the supply. That's what deficits can do and may be a reason why Congress might be a little more reluctant to open up the purse strings for another stimulus check.
