MNI:US Tsy's $78.0 Bln Refunding To Raise $39.8 Bln Cash

     WASHINGTON (MNI) - The Treasury Department's August quarterly refunding of

$78.0 billion will raise $39.8 billion new cash, Treasury announced Wednesday.

     For August, the Treasury Department said it will sell $34 billion 3-year

notes on August 7, $26 billion 10-year notes on August 8, and $18 billion

30-year bonds on August 9. These issues settle on August 15.

     The Treasury it anticipated raising the sizes of the 2-year, 3-year, and

5-year notes by $1 billion per month over the next three months and the size of

the next 2-year FRN auction by $1 billion. 

     Also, the size of the August 7-year, 10-year, and 30-year auctions will be

raised by $1 billion each and the held steady through October. The sizes of TIPS

auctions are not expected to change. It added that it may add a second new

5-year TIPS auction later in the year, but that is still under consideration.

     Treasury also said it will begin selling 2-month bills weekly in October,

at first auctioning on Tuesdays and settling on Thursday. These bills will

settle on Tuesdays, making for a slightly shorter maturity.

     Starting in December, the 2-month bills will be auctioned on Thursdays and

settle on Tuesdays, with the maturity on Tuesdays.

     Starting in November, the weekly 4-week bills will be reopenings of the

2-month bills. To facilitate this change, the four-week bills will also switch

to a schedule of Thursday auctions and Tuesday settlements starting in December.

Their maturity dates will be on Tuesdays starting in November, making the 4-week

bills sold during November slightly shorter than the usual 28 day duration.

     No changes are expected to the schedule of auctions for the 3-month,

6-month, and 52-week bills.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

[TOPICS: MNUAU$,M$U$$$,M$$FI$]