MNI: US Tsy's $83.0 Bln Refunding To Raise $28.7 Bln Cash

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

of $83.0 billion will raise $28.7 billion new cash, Treasury announced

Wednesday.

     For November, the Treasury Department said it will sell $37 billion 3-year

notes on November 5, $27 billion 10-year notes on November 6, and $19 billion

30-year bonds on November 7. These issues settle on November 15.

     The Treasury said it will raise the size of its 2-year, 3-year, and 5-year

note auctions by $1 billion each in each of the next two months. Additionally it

will raise the size of its November 2-year FRN, 7-year note, 10-year note, and

30-year bond auction sizes by $1 billion each and hold those sizes steady

through January. 

     The result would be $27 billion in new issuance, a smaller increase than

the $30 billion in increase in the previous quarter.

     Treasury also said it will be altering its TIPS issuance in 2019,

particularly adding a new 5-year TIPS issuance in October 2019. The usual

schedule of new and reopened securities auctions will be altered to accommodate

this change. 

     The most important change will be removal of one of the two reopenings of

the 30-year TIPS, leaving only the new issue (in February) and one reopening (in

August) for that series.

     Finally, the Treasury said it expects bill sizes to rise over the near term

due to the new 2-month issuance as well as increased borrowing needs, but sizes

should slide a bit near the end of the year.

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

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