WASHINGTON (MNI) – The Treasury Department’s May mid-quarter
refunding of $72.0 billion will raise all new cash as no securities are
maturing, Treasury announced Wednesday.
For May, the Treasury Department said it will sell $32 billion
3-year notes on May 10, $24 billion in 10-year notes on May 11 and $16
billion in 30-year bonds on May 12. Settlement for these issues is May
16.
The Treasury repeated that the debt limit is expected to be reached
by May 16.
“In light of the proximity to the debt limit,” effective May 6,
Treasury will suspend the issuance of State and Local Government Series.
If the debt limit is not raised by May 16, Treasury will employ
measures to “protect the creditworthiness of the country,” it said.
“Our current estimates indicate that these actions will allow
obligations of the U.S. to be met until about August 2, 2011,” the
Treasury said.
Treasury is also expected to offer cash management bills during the
quarter.
For the second quarter of 2011, Treasury Monday estimated it will
borrow $142 billion, assuming a $95 billion cash balance on June 30,
which includes $5 billion for the Supplementary Financing Program (SFP).
For the third quarter of 2011, Treasury estimated it will borrow
$405 billion, with a $115 billion cash balance at the end of September,
also assuming $5 billion for the SFP.
The second quarter refunding announcement will be Wednesday, May 4,
2011.
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 32.000 — May 10 May 16
10-yr notes 24.000 — May 11 May 16
30-yr bonds 16.000 $72.0 May 12 May 16
** Market News International Washington Bureau (202) 371-2121 **
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