US Tsy's $66.0 Bln Refunding To Raise $19.4 Bln Cash

--Will Raise Coupon Sizes In Coming Months Due To SOMA Drawdown

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

of $66.0 billion will raise $19.4 billion new cash, Treasury announced

Wednesday.

     For February, the Treasury Department said it will sell $26 billion 3-year

notes on February 6, $24 billion in 10-year notes on February 7 and $16 billion

in 30-year bonds on February 8. Settlement for these issues is February 15.

     The Treasury that it will increase the size of its coupon issuance due the

change in the Federal Reserve's reinvestment policy, resulting in an additional

$42 billion in new issuance over the coming quarter. 

     Here is the text of their statement on the matter:

     "Over the next quarter, Treasury anticipates increasing the sizes of the 2-

and 3-year note auctions by $2 billion per month. As a result, the size of 2-

and 3-year note auctions will increase by $6 billion by the end of the quarter.

In addition, Treasury will increase the auction size of the next 2-year FRN

auction by $2 billion in February. Finally, Treasury will increase auction sizes

by $1 billion to each of the next 5-, 7-, and 10-year notes and the 30-year bond

auctions starting in February. All changes are applicable to subsequent new

issues and reopenings. In total, these adjustments will result in an additional

$42 billion of new issuance for the upcoming quarter. Auction sizes for TIPS

will remain unchanged over the next quarter. TIPS continue to be an important

product in Treasury's debt issuance portfolio, and Treasury is fully committed

to the TIPS program."

     Treasury also encouraged Congress to act on the debt limit. It also is

seeking comment on the possible public release of Treasury transactions data.

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

[TOPICS: MNUAU$,M$U$$$,M$$FI$]