Treasury Assistant Secretary for Financial Markets Mary Miller
November 2011 Quarterly Refunding Statement
WASHINGTON – The U.S. Department of the Treasury is offering $72 billion of Treasury securities to refund approximately $23.9 billion of securities maturing on November 15, 2011. This will raise approximately $48.1 billion of new cash. The securities are:
- A 3-year note in the amount of $32 billion, maturing November 15, 2014;
- A 10-year note in the amount of $24 billion, maturing November 15, 2021; and
- A 30-year bond in the amount of $16 billion, maturing November 15, 2041.
The 3-year note will be auctioned on a yield basis at 1:00 p.m. EST on Tuesday, November 8, 2011. The 10-year note will be auctioned on a yield basis at 1:00 p.m. EST on Wednesday, November 9, 2011, and the 30-year bond will be auctioned on a yield basis at 1:00 p.m. EST on Thursday, November 10, 2011. All of these auctions will settle on Tuesday, November 15, 2011.
The balance of Treasury financing requirements will be met with the weekly bill auctions, the monthly nominal coupon security auctions, the November 10-year Treasury Inflation Protected Security (TIPS) reopening auction, the December 5-year TIPS reopening auction and the January 10-year TIPS auction.
Treasury may also issue cash management bills during the quarter.
Projected Financing Needs
At the August 2011 quarterly refunding, Treasury indicated that it expected to modestly decrease offering amounts for notes and bonds in the coming months. Given the current range of potential fiscal policy outcomes, Treasury believes that it is prudent to hold offering sizes for notes and bonds stable over the near term. Going forward, Treasury will provide guidance to market participants regarding any changes in the fiscal outlook that might impact the government’s financing needs.
Treasury Inflation Protected Security (TIPS) Issuance in 2012
TIPS are an important part of Treasury’s overall debt management strategy. Over the past two years, Treasury has taken a number of steps to improve liquidity in the TIPS market, including increasing TIPS issuance, increasing the frequency of auctions, and moving 20-year TIPS to 30-year TIPS. These actions have been taken after extensive consultation with market participants.
Going forward, Treasury expects to continue to gradually increase gross issuance of TIPS in 2012. Treasury continues to welcome feedback on the size and composition of TIPS issuance.
The next quarterly refunding announcement will take place on Wednesday, February 1, 2012.