WASHINGTON Feb 6 The U.S. Treasury on Wednesday
announced plans to auction $72 billion in debt securities next
week, in line with expectations, also adding that it is planning
to issue floating-rate notes in the next year.
In its quarterly refunding announcement, the Treasury said
the government will issue $32 billion in three-year notes, $24
billion in 10-year notes and $16 billion in 30-year bonds,
unchanged from its announcement last quarter.
The auctions together will raise about $8 billion in new
cash, Treasury officials said, adding that they expect debt
sales to remain stable in the next few months.
Treasury also said it is currently reviewing comments on
floating rate notes, and plans to issue final rules in coming
months. These notes are the first new debt security since 1997,
and would attract investors who want to be sure they do not miss
out on higher returns if interest rates begin to move higher.
Treasury's borrowing advisers said they are hopeful the
first floating rate note auction can happen around November of
Treasury also plans to issue more five-year
inflation-protected securities, or TIPS, this year, officials
said. The Treasury department has said it wants to issue more
notes in order to increase liquidity in the TIPS market.
Earlier this week, the Treasury cut its borrowing estimates
for the year's first quarter to $331 billion after starting off
the year with a higher-than-expected cash balance.
Officials on Tuesday also said Treasury would issue $31
billion in debt to repay money to retirement funds it drew on
during emergency cash measures. These so-called "extraordinary
measures" helped the government preserve its borrowing capacity
after the nation touched the legal limit on its debt.
President Barack Obama earlier this week signed legislation
to allow the government to keep borrowing money at least through
Asked about the prospect of issuing a 50-year bond, which
was discussed hypothetically at the primary dealer banks'
advisory meeting, Matthew Rutherford, assistant secretary for
financial markets, was non-committal.
"It's an important topic but more needs to be done," he told