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MNI UST Issuance Deep Dive: Nov 2021 Refunding

MNI UST Issuance Deep Dive: November 2021 Refunding

MNI UST Issuance Deep Dive: Nov 2021 Refunding

EXECUTIVE SUMMARY:

  • Coupon issuance reductions are expected when the U.S. Treasury Department announces additional details to the November 2021 Quarterly Refunding, Wednesday, November 3, 0830ET.
  • The Treasury announced Monday that it expects to borrow USD1.015 trillion in privately held net marketable debt in the fourth quarter, USD312 billion more than previously announced in August.
  • The following issuance reductions are based on the August Treasury Borrowing Advisory Committee's (TBAC) recommended financing schedule for the fourth quarter of 2021:

2Y

3Y

5Y

7Y

10Y

20Y

30Y

November

$58B (-$2B)

$56B (-$2B)

$59B (-$2B)

$59B (-$3B)

$38B (-$3B)

$23B (-$4B)

$25B (-$2B)

December

$56B (-$2B)

$54B (-$2B)

$57B (-$2B)

$56B (-$3B)

$35B (-$3B)

$20B (-$3B)

$22B (-$3B)

  • Floating rate issuance is expected to remain steady while 2- and 5Y TIPS are expected to increase $1B.
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