U.S. Treasury keeps auction sizes steady, bill decline to slow By Reuters

© Reuters. FILE PHOTO: The United States Department of the Treasury is seen in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly

(Reuters) -The U.S. Treasury Department said on Wednesday it will keep its coupon issuance steady over the coming quarter, and that declines in outstanding Treasury bills should slow.

The Treasury said it will sell $58 billion in three-year notes next week as well as $41 billion in 10-year notes and $27 billion in 30-year bonds, unchanged from last quarter.

It noted that it faces uncertain and sizable borrowing needs due to pandemic-related spending and that any shifts in borrowing needs will be met with changes in its issuance of Treasury bills and cash management bills.

The Treasury also said it expects Congress to raise or suspend the U.S. debt limit in a timely manner, and that it may take certain extraordinary measures if Congress does not.

Any such measure would be implemented after the reinstatement of the debt ceiling, if it occurs, rather than in anticipation of such a move, said Brian Smith, deputy assistant secretary for federal finance, in a call with reporters.

The Treasury also warned that extraordinary measures could be exhausted more quickly than in previous debt limit episodes.

The government expects its cash balance to be around $450 billion at the expiration of the debt limit suspension on July 31.

It expects the amount of Treasury bills outstanding to fall by around $150 billion by this date, which is approximately one-third of the size of the decline in bill supply since the February refunding.

The Treasury has reduced bill issuance this year as it cuts its cash balance, after raising a record amount of cash last year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button