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MNI BRIEF: US Treasury Increases Coupons, Flags One More Round

The U.S. Treasury said Wednesday it would gradually increase nominal coupon auction sizes in the November, December and January with more moderate increases at the longer-end of the yield curve. It also anticipates one more quarter of further gradual increases to meet borrowing needs.

The department will issue USD112 billion of securities at next week's refunding, raising USD9.8 billion in new cash. Officials plan to sell USD48 billion in 3-year notes on November 7, USD40 billion in 10-year notes on November 8, and USD24 billion in 30-year bonds on November 9.

Treasury said it expects to maintain bill auction sizes at current levels into late November. Treasury anticipates by early December making modest reductions to short-dated bill auctions that will be maintained through mid- to late-January. Treasury is still evaluating whether to change the 6-week CMB to benchmark status.

The agency said it is making "significant progress" on plans to implement a buy back program next year and at the next quarterly refunding will provide an update on timing.

Anticipated Auction Sizes (billions USD)

Source: Treasury Department

MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | evan.ryser@marketnews.com

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