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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
     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:

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