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Pastimes : Kosovo -- Ignore unavailable to you. Want to Upgrade?

To: cody andre who wrote (13894)	8/3/1999 7:19:00 AM
From: MNI	Read Replies (1) \| Respond to of 17770

Once you acknowledge the bubble's existence, and given a budget surplus, wouldn't this move be beneficial ? Or what would disturb you about it ?

To: cody andre who wrote (13894)	8/4/1999 12:03:00 PM
From: Les H	Read Replies (1) \| Respond to of 17770

US TSY'S $37.0 BLN REFUNDING TO RAISE $8.110 BLN NEW CASH --Tsy Cuts Bond Issuance To Twice A Year; Scratches November By Dave Sherrell WASHINGTON (MktNews) - The Treasury Department's August mid-quarter refunding of $37.0 billion will raise $8.110 billion new cash for the government, Treasury announced Wednesday. In addition, Treasury announced more changes to its auction cycle, cutting the 30-yr bond issuance from three times a year to just twice a year by a eliminating the November bond. That leaves just the February and August bonds in the current calendar cycle. Treasury also said it was considering cutting back the frequency of the 1-year bills and the 2-year notes, each of which are currently sold about once a month. No decision has yet been made, however. For August, the department said it will sell $15.0 billion in 5-year notes August 10, $12.0 billion in 10-year notes on August 11, and $10.0 billion in 30-year notes on August 12, with settlement for these issues August 16. For the July/September quarter, Treasury Monday estimated it will paydown $11 billion, assuming a $45 billion cash balance on September 30. Including Wednesday's announcements, Treasury will have paid down $18.6 billion in the quarter, leaving $7.4 billion of borrowing to match the forecast. Treasury said it expects to issue two cash management bills, one in mid-August and another in either late-August or early-September. Both of these bills will settle after the September 15 tax date. For the fourth quarter, the department Monday estimated a net market borrowing need of $65 billion to amass a huge $80 billion cash balance at the end of December. To meet this extra cash need, Treasury said it plans to increase the size of the weekly bill auctions and to sell several cash management bills which would mature in the first quarter of 2000. Treasury cited several reasons for the anticipated large year-end cash bulge, primarily as a precaution for Y2K problems. Congress recently enacted legislation to have the Federal Financing Bank provide up to $20 billion to the National Credit Union Administration should liquidity be needed. The NCUA says it does not expect to need the facility, but Treasury is prepared to extend the credit just the same. Also, Treasury said there is more uncertainty than usual this year on daily forecasts of receipts and outlays leading up to the end of the year. Treasury said it doesn't expect any problems, but added it was appropriate to be prepared nonetheless. As for Treasury's financial systems, including those to collect taxes, disburse payments, and auction securities, both Treasury and the Federal Reserve have certified them as Y2K ready.