WASHINGTON — The Treasury Department's November quarterly refunding of $62.0 billion will raise $19.3 billion new cash, Treasury announced Wednesday.
The Treasury said that it intends to maintain current coupons sizes over the fourth quarter and will meeting changes in borrowing needs by adjusting bill sizes and issuing cash management bills.
However, Treasury did say that it expects to announce changes to the sizes of coupons and 2-year FRN at February refunding to account for the Federal Reserve's drawdown of its reinvestments.
Treasury said in a statement that in addition to increasing bill supply, it "anticipates announcing gradual adjustments to its nominal coupon and 2-year FRN auction sizes at February 2018 refunding. The magnitude and allocation of increases to auction sizes will depend in part of projections for the fiscal outlook, as well as feedback from market participants."
Treasury said that based on current forecasts, it expects the weighted average maturity to remain at or around current level after these announced changes, but cautioned that unexpected large changes could alter than projection. Treasury said any changes will be made in a "regular and predictable" manner.
Treasury made no mention of ultra-long bonds in its statement Wednesday.
For November, the Treasury Department said it will sell $24 billion 3-year notes on November 7, $23 billion in 10-year notes on November 8 and $15 billion in 30-year bonds on November 9. Settlement for these issues is November 15.
For the fourth quarter of 2017, Treasury Monday estimated it will borrow $275 billion, assuming a $205 billion cash balance at the end of December.
For the first quarter of 2018, Treasury estimated it will borrow $512 billion, with a $300 billion cash balance at the end of March.
