WASHINGTON - The Treasury Department's May quarterly refunding of $62.0 billion will raise $1.9 billion new cash, Treasury announced Wednesday.
For May, the Treasury Department said it will sell $24 billion 3-year notes on May 10, $23 billion in 10-year notes on May 11 and $15 billion in 30-year bonds on May 12. Settlement for these issues is May 16.
The Treasury also said it is reiterating its intent to increase the supply of Treasury bill but not altering the auction schedule. "given current projected financing needs over the next few years," the announcement said, "Treasury expects that the supply of bills will increase to a prudent level with the existing auction schedule."
The department also said it is maintaining nominal coupon auction sizes at current levels over this quarter. Treasury will also maintain the $2 billion reduction in monthly TIPS issuance over the next three quarters.
Treasury also said it is keeping its options open, as the Treasury Borrowing Advisory Committee has suggested, in that October implementation of SEC reforms of the prime mutual fund composition, limiting investment to Treasuries, could increase demand.
For the second quarter of 2016, Treasury Monday estimated it will paydown $65.0 billion, assuming a $350.0 billion cash balance at the end of June.
For the third quarter of 2016, Treasury estimated it will borrow $155 billion, with a $300 billion cash balance at the end of June.
The third quarter refunding announcement will be Wednesday, August 3.
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