Analysts at Brown Brothers eyed......>

US TSYS/SUPPLY: Analysts at Brown Brothers eyed Wed 8:30am ET Tsy Quarterly

Refunding Announcement, and said "with healthcare reform sidelined, for the time

being, the legislative emphasis has turned to tax reform. However, before tax

reform, Congress must do two other things. The debt ceiling must be raised and

spending authorization for the new fiscal year beginning October 1 is needed."

- They added although Treasury Secretary Mnuchin "has called for a clean bill to

lift the debt ceiling, Mulvaney, the head of the executive branch's Office of

Management and Budget is urging Congress to demand additional spending cuts.

Most likely the debt ceiling increase will be attached as an amendment to

another bill. A spending authorization bill was passed earlier this year, but it

runs out at the end of the fiscal year. A new one is needed to keep the

government open. It is possible that by the end of September, the issue is not

resolved. Much to their chagrin, the Republican Party would likely pass a

"continuing resolution" that allows this year's spending to be extended into the

new year."