Free Trial

Nomura analysts said on Wed 8:30am...>

US TSYS/SUPPLY
US TSYS/SUPPLY: Nomura analysts said on Wed 8:30am ET Aug. Tsy quarterly
refunding news that "this US Tsy refunding analysis period is even more
important" than usual, "because it takes place ahead of the potential start of
the Fed balance-sheet unwind in Q4 2017. The Treasury is now in a position to
reassess its debt management strategy to account for Fed rolloffs."
- They add "Treasury will provide its findings" Wed as "it releases its
refunding announcement. For this refunding package, we forecast $62bn" in
3/10/30Y auction supply, "made up of new 3yr ($24bn), 10yr ($23bn) and 30yr
bonds ($15bn)."
- And Nomura analysts said on US Treasury supply/Fed balance sheet rolloff
interaction that "even though initial Fed (balance sheet) roll-offs will be
small, we recommend the Treasury start increasing all auction sizes as early as
the Nov 2017 refunding." 

To read the full story

Close

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.