The Treasury Department yesterday detailed its quarterly refunding and plans to auction $32 billion of three-year notes, $21 billion of 10-year notes, and $14 billion of 30-year bonds.
Treasury also said it will sell seven-year notes on a monthly basis and have four re-openings of its 30-year bonds, in March, June, September, and December.
The three-year notes will be auctioned on Feb. 10, the 10-year note will be auctioned on Feb. 11, and the 30-year bond will be auctioned on Feb. 12. All of the auctions will settle on Feb. 17.
The first auction of the seven-year notes will occur on Feb. 26 at 1 p.m., Eastern Standard Time, for settlement on March 2. Treasury moved the two-year and five-year note auctions to Feb. 24 and Feb. 2five at 1 p.m., respectively. The settlement date for the two-year and five-year notes will be March 2.
The balance of Treasury’s financing requirements will be met with weekly bills; monthly 52-week bills; monthly two-year, three-year, five-year, and seven-year notes; the March 10-year note and 30-year bond reopenings; the April 10-year note reopening; the April five-year TIPS; and the April 10-year TIPS reopening, the department said.
Treasury also expects to issue cash management bills during the quarter.
Treasury said it added the seven-years and the 30-year reopenings because of a “large increase in projected financing needs and to better manage the overall debt portfolio.”
In a statement, the Treasury Borrowing Advisory Committee recommended increasing existing monthly two-year and three-year notes by $5 billion in size, to $45 billion and $35 billion, respectively.
“Furthermore, the committee recommends that monthly five-year notes have the greatest room for expansion given their liquidity and focus and should be increased by as much as $10 billion per issue. This would bring the monthly issuance size to as much as $40 billion,” the statement said.
