WASHINGTON, April 13 The U.S. Treasury
Department on Friday asked Wall Street for its views on the
Treasury's current auction schedule and whether it is compatible
with economic and fiscal outlooks for 2012 and 2013.
The questions were contained in the Treasury's quarterly
refunding survey of primary government bond dealers. The
Treasury is expected to meet with primary dealers on April 26-27
ahead of the department's refunding announcement on May 2.
"Do you believe the current auction schedule is well-suited
to meet Treasury's expected financing needs?" the survey asked.
The survey also asked dealers to assess whether or not the
Federal Reserve's maturity extension program -- which involves
the sale of shorter-term Treasury securities -- will have an
impact on the market when it ends on June 30.
Primary dealers, which include Goldman Sachs Inc and
JPMorgan Chase & Co, are the financial firms with
special permission to bid directly on behalf of their clients at
Treasury also asked primary dealers to provide feedback on
the increased usage of electronic trading platforms in the
Treasury market. Officials wanted to know how the uptick has
changed trading dynamics and liquidity.
A U.S. Treasury official said that the consideration of
floating-rate notes were still being studied and no decisions
had been made at this time. The comment period on the proposal
ends next Wednesday.
In February, the Treasury Borrowing Advisory Committee had
suggested that the department consider issuing floating rate
notes -- a form of debt never before offered by the Treasury.
Government-sponsored enterprises such as Fannie Mae,
Freddie Mac, and the Federal Home Loan Bank System are
regular issuers of floating rate notes.