SMRA's Nancy Vanden Houten noted.....>

US TSYS/SUPPLY: SMRA's Nancy Vanden Houten noted the US Treasury "announced a

$62.0 billion refunding, as expected" in 3/10/30Y auctions next week that "will

refund $42.7 billion in maturing debt held by non-Fed investors, and raise $19.3

billion in new cash." 

- She added the announcement "confirms that Treasury announcements of net

borrowing amounts will exclude Fed redemptions. We had been including maturing

Fed holdings in our projections, but we will switch over to Treasury's

convention." 

- She adds the "refunding auctions will settle on Nov. 15, which coincides with

the payment of $22.2 billion in interest to non-Fed investors. The Fed will

receive $13.3 billion in interest payments on Nov. 15. Treasury said it would

announce "gradual adjustments" to FRNs and coupon auctions at the February

refunding."