Summary
Earlier today, the Treasury earlier today announced the outline of its February refunding operation. Next week, Treasury will conduct three auctions totaling $51.0 billion. These will refund $11.44 billion in maturing debt, and raise $39.56 in new cash.
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The Treasury's February refunding operation will consist of auctions next week of three new note issues -- three-, five- and 10-year maturities -- totaling $51.0 billion. These issues will refund $11.44 billion of publically held debt maturing on 2/15, and raise $39.56 billion of new cash.
In addition to the public holdings, Federal Reserve banks hold $4.71 billion of maturing issues for their own accounts. The Treasury may refund these through the sale of additional amounts of the new securities.
By comparison, the Treasury's February 2004 financing involved the issuance of $56.0 billion in notes. That operation refunded $26.61 billion of maturing debt, while raising $29.39 billion in new cash.
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FEBRUARY 2005 TREASURY REFUNDING OPERATION*
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Auction Amount 02/02 When-
Date (Bils.) Maturity Coupon Issued Yield
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02/08 $22.0 02/15/08 @ NA#
02/09 $15.0 02/15/10 @ NA#
02/10 $14.0 02/15/15 @ NA#
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$51.0
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*To refund $11.44 billion in maturing issues
and raise $39.56 billion in new cash. @Coupon
to be established through auction process.
#At 10:00 AM (ET) on 2/2, the current on-the-
run 3-year, 5-year and 10-year issues (3.000s
of 11/15/07, 3.625s of 1/15/10 and 4.250s of
11/15/14) were trading at respective yields of
3.41%, 3.70% and 4.14%.
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