August 01, 2024 12:51 GMT
MNI UST Issuance: Aug 2024 Refunding Review
Treasury's August refunding round saw cautiously positive market reaction, with no changes to coupon auction sizes or future issuance guidance.
EXECUTIVE SUMMARY:
August Refunding Review: Upsizing To Wait
Key takeaways from August’s quarterly Treasury Refunding process (July 29-July 31):
- Coupon auction sizes left unchanged, TIPS upped slightly – all as expected
- No change in guidance that sizes aren’t expected to increase “for at least the next several quarters”
- Cash management buybacks to debut in September
- Advisory committee makes notable shift in recommended bill proportion of total marketable debt
- Treasury is playing it “down the middle” with cash balances ahead of potential debt ceiling issues in Jan 2025
- Market response was cautiously positive, with some bull flattening in the Treasury curve
- MNI's review includes a calendar of upcoming auctions and buyback operations, and reactions from sell-side analysts
Please see PDF for full analysis:
MNI_US_RefundingReviewAug2024.pdf
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