MNI: US Tsy's $84.0 Bln Refunding To Raise $26.7 Bln Cash

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

$84.0 billion will raise $26.7 billion new cash. They expect no changes to

nominal coupon or FRN auction sizes through the remainder of the year.

     For May, the Treasury Department said it will sell $38 billion 3-year notes

on August 6, $27 billion 10-year notes on August 7, and $19 billion 30-year

bonds on August 8. These issues settle on August 15.

     The Treasury said that the debt limit impasse has restricted bill issuance

and kept the cash balance below the level it would prefer. After the debt limit

is suspending, Treasury intends to gradually raise bill sizes back to May

levels, boosting the end of quarter cash balance to its desired level by the end

of September.

     Treasury also said it is raising TIPS sizes over the next three months,

with the August 30-year TIPS reopening seen rising to $7 billion, the September

10-year TIPS reopening lifted to $12 billion and the new October 5-year TIPS at

$17 billion. 

     Treasury said that it continues to evaluate the possibility of issuing at

Treasury FRN that is linked to the Secured Overnight Financing Rate, but that no

decision has been made yet.

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

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