WASHINGTON - The Treasury Department's May quarterly refunding of $62.0 billion will raise $12.3 billion new cash, Treasury announced Wednesday.
For May, the Treasury Department said it will sell $24 billion 3-year notes on May 9, $23 billion in 10-year notes on May 10 and $15 billion in 30-year bonds on May 11. Settlement for these issues is May 15.
The Treasury said it plans to maintain current coupon auction sizes and will meet changes in its borrowing needs by altering its bill sizes and issuing cash management bills. However, Treasury also said it could increase both bill and nominal coupon sizes in response to the Fed reducing its coupon reinvestments.
Treasury also said it is studying the possibility of ultra-long Treasury bonds with maturities greater than 30 years. The Treasury Borrowing Advisory Committee specifically mentioned 50-year zero coupon issue as the key maturity.
Treasury also encouraged Congress to either raise or suspend the debt limit, saying it will run out of "extraordinary measures" in the second half of 2017.
For the second quarter of 2017, Treasury Monday estimated it will borrow $26 billion, assuming a $200 billion cash balance at the end of June.
For the third quarter of 2017, Treasury estimated it will borrow $98 billion, with a $115 billion cash balance at the end of September.
