REPEAT: US Tsy's $62.0 Bln Refunding To Raise $19.3 Bln Cash

Repeats Story Initially Transmitted at 12:35 GMT Nov 1/08:35 EST Nov 1

     WASHINGTON (MNI) - The Treasury Department's November quarterly refunding

of $62.0 billion will raise $19.3 billion new cash, Treasury announced

Wednesday.

     The Treasury said that it intends to maintain current coupons sizes over

the fourth quarter and will meeting changes in borrowing needs by adjusting bill

sizes and issuing cash management bills.

     However, Treasury did say that it expects to announce changes to the sizes

of coupons and 2-year FRN at February refunding to account for the Federal

Reserve's drawdown of its reinvestments.

     Treasury said in a statement that in addition to increasing bill supply, it

"anticipates announcing gradual adjustments to its nominal coupon and 2-year FRN

auction sizes at February 2018 refunding. The magnitude and allocation of

increases to auction sizes will depend in part of projections for the fiscal

outlook, as well as feedback from market participants."

     Treasury said that based on current forecasts, it expects the weighted

average maturity to remain at or around current level after these announced

changes, but cautioned that unexpected large changes could alter than

projection. Treasury said any changes will be made in a "regular and

predictable" manner.

     Treasury made not mention of ultra-long bonds in its statement Wednesday.

     For November, the Treasury Department said it will sell $24 billion 3-year

notes on November 7, $23 billion in 10-year notes on November 8 and $15 billion

in 30-year bonds on November 9. Settlement for these issues is November 15.

     For the fourth quarter of 2017, Treasury Monday estimated it will borrow

$275 billion, assuming a $205 billion cash balance at the end of December.

     For the first quarter of 2018, Treasury estimated it will borrow $512

billion, with a $300 billion cash balance at the end of March.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com