Treasury to Sell $16B 30 Yrs, $24B 10 Yrs, $32B 3 Yrs

The Treasury Department's quarterly refunding of $72.0 billion will raise $2.4 billion new cash, Treasury announced Wednesday.

For August, the Treasury Department said it will sell $32 billion 3-year notes on August 6, $24 billion in 10-year notes on August 7 and $16 billion in 30-year bonds on August 8, all unchanged from the previous refunding. Settlement for these issues is August 15.

The Treasury said it "expects to gradually decrease coupon auction sizes over the coming quarter" and an official added it could be next month or the month after depending on receipts and other factors.

Treasury also said it will conduct its first floating-rate note auction in January 2014 and will provide additional information on the potential size at the November 6 refunding.

It also said it has published in the Federal Register today its final rule for the FRN program, which, the official said, is very little changed from the earlier proposal.

For the third quarter of 2013, Treasury Monday estimated it will borrow $209 billion, assuming a $95 billion cash balance at the end of September.

For the fourth quarter, Treasury estimated it will borrow $235 billion, with a $80 billion cash balance at the end of December.

The fourth quarter refunding announcement will be Wednesday, November 6,
2013.

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