US plans to auction US$72b of debt
Source: Bloomberg News |
May 5, 2011, Thursday
|
Print Edition
Print Edition
THE United States Treasury Department plans to sell US$72 billion in its quarterly sales of long-term debt next week, and anticipates auction sizes will "remain steady" as Congress and the White House debate raising the debt limit.
The Treasury said it will auction US$32 billion in three-year notes next Tuesday, US$24 billion in 10-year notes next Wednesday and US$16 billion in 30-year bonds on May 12. The total amount was in line with expectations of bond market participants surveyed by Bloomberg News.
Treasury Secretary Timothy Geithner said on Monday the US will have three weeks more than previously seen before hitting its borrowing limit, giving the White House and Congress more time for a deal to raise the debt ceiling.
"There is so much uncertainty around the fiscal situation that Treasury debt managers want to simply sit tight and see how things play out," Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut said in an e-mail in response to a question from Bloomberg News. "There is no compelling need to make major changes, so they plan to hold coupon auction sizes steady until there is enough clarity on the fiscal side to draw up a more definitive game plan."
Treasury 10-year notes advanced after the Institute for Supply Management's index of non-manufacturing companies slumped to the lowest since August. The yield, which moves inversely to price, fell to 3.22 percent from 3.25 percent late Tuesday.
The Treasury said it will auction US$32 billion in three-year notes next Tuesday, US$24 billion in 10-year notes next Wednesday and US$16 billion in 30-year bonds on May 12. The total amount was in line with expectations of bond market participants surveyed by Bloomberg News.
Treasury Secretary Timothy Geithner said on Monday the US will have three weeks more than previously seen before hitting its borrowing limit, giving the White House and Congress more time for a deal to raise the debt ceiling.
"There is so much uncertainty around the fiscal situation that Treasury debt managers want to simply sit tight and see how things play out," Stephen Stanley, chief economist at Pierpont Securities LLC in Stamford, Connecticut said in an e-mail in response to a question from Bloomberg News. "There is no compelling need to make major changes, so they plan to hold coupon auction sizes steady until there is enough clarity on the fiscal side to draw up a more definitive game plan."
Treasury 10-year notes advanced after the Institute for Supply Management's index of non-manufacturing companies slumped to the lowest since August. The yield, which moves inversely to price, fell to 3.22 percent from 3.25 percent late Tuesday.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
