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Auction Sizes Confirmed


US Tsy confirms next week's auction sizes for 3s, 10s and 30s: steady at $58B, $38B and $24B respectively. Coupon auction sizes still estimated to finish out the quarter at record highs when 2s, 5s 7s and 20s announced on July 22: $60B, $61B, $62B, and $24B respectively.

  • As noted by MNI earlier: US Tsy may keep its cash balance at a considerably higher level than previously forecast by the end of July so as to build a larger buffer for potentially dragged out debt-ceiling negotiations in Congress, putting less downward pressure on money market rates, former New York Fed economist Christopher Russo told MNI.
  • Treasury is likely to try to smooth the bumpy ride past the Aug. 1 debt ceiling deadline by keeping borrowing on a steadier path and only drawing down its cash balance to around USD600 billion at month-end from USD734 billion now, some USD150 billion higher than it previously forecast, he said. "If the Treasury General Account needs to be elevated going into July 31, the Treasury won't take extreme action to cut down to USD450 billion," said Russo.
  • The next quarterly refunding announcement will take place on Wednesday, August 4, 2021.
12-Jul1300ET$38B10Y-Note R/O(91282CCB5)
13-Jul1300ET$24B30Y-Bond R/O(912810SX7)

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