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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US TSYS/SUPPLY
- No Increase In Auction Sizes. Treasury said in Wednesday's quarterly refunding announcement it "doesn't anticipate needing to increase nominal coupon or FRN auction sizes for at least the next several quarters." Analysts expect the next increase to come some time in 2025 or 2026.
- According to the TBAC advisory committee minutes, some dealers thought "modest increases might be needed sometime in 2025 or 2026," citing uncertainty about borrowing needs and the potential for a debt limit impasse in the first half of next year.
- Buybacks Ramp Up. Treasury plans to conduct weekly liquidity support buybacks of up to $4 billion per operation in nominal coupon securities. In longer-maturity buckets, Treasury will conduct two operations, each up to $2 billion, over the refunding quarter. Treasury also plans to conduct two operations, each up to $500 million, in each of the TIPS buckets.
- Based on current projected fiscal flows around the September 15th tax date, Treasury plans to conduct cash management buybacks in September. Amounts purchased in cash management buybacks would temper the reductions to bill auction sizes that would otherwise occur over the same timeframe.
- Treasury confirmed it will remove its temporary CUSIP limits in August and increase the size of the program to its previously announced $30 billion per quarter pace.
Anticipated Auction Sizes for the August to October 2024 quarter (in B USD)
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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