Treasury bond auction
  • Total refunding of $125billion in May-July quarter, including $17.2b of new cash
  • Will sell $58 billion in 3s, $42b in 10s and $25b in 30s
  • To increase 5y TIPS by $1b to $21b
  • To keep 10y TIPS at $16b
  • Prudent to continue incremental increase in TIPS in May-July quarter
  • Expects to increase 4, 6, and 8 week bill auctions in coming days
  • Through July plans to hold weekly liquidity support buybacks of up to $2b per quarter

Yields are at the lows of the day after the announcement.