The Treasury Department said it will raise $8 billion new cash by selling $72 billion of securities to replace $64 billion maturing Feb. 15, by selling $16 billion 30-year bonds, $24 billion 10-year notes and $32 billion three-year notes as part of its quarterly refunding.
The 30-years will sell on Thursday, Feb. 14, the 10-years are to be auctioned on Wednesday, Feb. 13, and the three-years are expected Tuesday, Feb. 12. All of the auctions settle on Friday, February 15.
Treasury said it will meet the remainder of its financing requirements with its weekly bill auctions, cash management bills, its monthly note and bond auctions, the February 30-year Treasury Inflation Protected Security (TIPS) auction, the March 10-year TIPS reopening auction, and the April 5-year TIPS auction.
Treasury said it expects note and bond auction sizes stable in the quarter as the current coupon issuance schedule and offering sizes for notes and bonds should be adequate to address forecasted borrowing needs over the near term.
"As is typical during the tax season, in the coming weeks there will be a seasonal increase in borrowing needs ahead of the April 2013 filing deadline," Treasury said in a release. "Treasury plans to address this seasonal borrowing need through increases in regular bill auction sizes and cash management bills."
Following up on its announcement that it would develop a floating rate note program to complement its current "suite of securities" and to ensure the lowest cost financing, Treasury said it solicited public comments on such a program, and is reviewing comments.
Treasury expects "to issue a final rule on floating rate notes in the coming months, with the first FRN auction still estimated to be about a year away."
Treasury said it plans to continue gradually increasing issuance of TIPS in 2013, targeting 5-year TIPs.