U.S. to auction $44 billion in Treasurys next week
Wednesday, November 2, 2005 1:52:08 PM
afxpress.com
WASHINGTON (AFX) -- The U.S. government will auction $44 billion in notes at next week's quarterly refunding auction to raise $5.3 billion in new cash and refund $38.7 billion in maturing notes, the Treasury Department said Wednesday
The government will auction $18 billion in 3-year notes on Tuesday, $13 billion in 5-year notes on Wednesday and $13 billion in 10-year notes on Thursday
The auction amounts were in line with estimates by Wall Street firms. The 30-year bond will be reintroduced at a Feb. 9 auction. Once the 30-year bond is brought back, the Treasury will move the monthly 5-year auction to the end of the month
The government also anticipates selling cash management bills in early December and January. The government plans to borrow a net $96 billion in marketable securities in the fourth quarter, the Treasury Department said Monday. For the first quarter of 2006, the Treasury anticipates borrowing a record $171 billion from the markets, as the bill to finance Gulf Coast rebuilding adds up
This will top the $144 billion borrowed in the first quarter of 2005 and $146 billion borrowed a year earlier
The high borrowing estimate could put upward pressure on yields, thus raise consumer and corporate borrowing costs, analysts at Action Economics said
Treasury borrowed $52 billion in marketable debt in the just-concluded third quarter. The government borrowed $216 billion in the markets in fiscal year 2005, down significantly from $380 billion in 2004. The improvement was due to stronger-than-expected receipts and record borrowing of $67 billion from state and local governments. Most analysts look for increased spending to be met, at least initially, by increased short-term bill issuance, allowing longer-term or "coupon" issuance, which costs the government more in interest, to remain about where it has |
