$99 Billion In 2,5 And 7 Year Bonds On Deck
Total Federal debt as of last night was $13.7 trillion. This is obviously insufficient. Which is why the Treasury just announced its latest refunding announcement in 2, 5 and 7 Year Notes. The total: $99 billion in new debt to come. Which makes the Fed happy: more bonds to buy shortly. It also makes it nervous, since with debt with a 10 year+ duration just under $600 billion in total, it means that very soon the Fed's average holding duration will drop from its current 4 years to even lower.
Here is the breakdown for upcoming issuance with auction date:
- October 26: $35 billion 2 Year notes (link)
- October 27: $35 billion 5 Year notes (link)
- October 28: $29 billion 7 Year notes (link)