Nomura N.American hd of rate.........>

US TSYS/SUPPLY: Nomura N.American hd of rate research George Goncalves eyed Wed

8:30am ET Nov Tsy Refunding announcemt, expects Nov refunding to have $62B total

supply: new $24B 3Y auction, $23B 10Y auction and $15B 30Y bond auction. 

- He adds on dealer refunding questns as follows: "Do you believe the current

financing schedule is well-suited to meet Tsy's financing needs though the end

of FY2018? FY2019?" 

- Goncalves projects a budget deficit around $650bn in FY2018 and $850bn in

FY2019. "The FY2018 projection includes about $65bn of additional deficit on the

back of tax reform, with tax cuts and spending increases likely starting to

materialize in early-to-mid 2018. "

- "For FY2019, tax reform will likely have a full-year impact of adding about

$130bn to the deficit," he said. "To finance the fiscal stimulus as well as

Fed's balance-sheet UST roll-offs, we have been advocating an across-the-board

approach where auction sizes on all tenors increase. The aim would be to keep

WAMs increasing (a potentially introduction of a new maturity pts in the lng-end

wd help here too)."