And BBH analysts said Wed, the US....>

US TSYS/SUPPLY: And BBH analysts said Wed, the US Treasury "will announce its Q3

refunding plans" after it Mon "projected borrowing $96 bln in Q3, which is $2

bln less than it had projected in June. However, it signaled a surge in its

borrowing needs for Q4; a whopping $501 bln."

- They add "this is a huge amount of supply and appears to reflect the pay back

for the extraordinary measures to circumvent the debt ceiling. Cash balances and

bill holdings need to be raised. It appears to be the largest amount the federal

govt has sought to borrow in a single quarter since the crisis in Q4 2008.

Moreover, the surge in supply at the same time that we expect the Fed to begin

allowing its balance sheet to shrink by not rolling over the full proceeds of

maturing issues." The refunding announcement "may see Secretary Mnuchin give

some indication on how the Treasury will address the Fed's unwinding of QE,"

they said.

- And Mnuchin may update on Tsy views on ultra-long bond (longer than current

30Ys), they said. "The strongest argument is that it would" likely result "in

the lowest funds costs for American taxpayers," they said.