Record Treasury Supply On Deck: $116 Billion In Bond Issues, $182 Billion Total; Will Debt Ceiling Be Breached Next Week?
The Treasury has released the line up of Treasury issuance for next week and it is a stunner: in the week of October 26th alone, the US will issue $116 billion in new Treasury Notes (2,5 and 7 Years), another $30 billion in Bills and $7 billion in TIPS. As pointed out earlier, there is about $150 billion in availability before the Federal debt ceiling is breached ($12.1 trillion). This likely means that Geithner will have to resort to some last minute tricks to make this full upcoming issuance legally permitted.
From Treasury Direct:
- $29 Billion in 91 Day Bills, October 26
- $30 Billion in 182 Day Bills, October 26
- $7 Billion in 4.5 Year TIPS, October 26
- $44 Billion in 2 Year Notes, October 27
- $41 Billion in 5 Year Notes, October 28
- $31 Billion in 7 Year Notes, October 29
Total Bonds: $116 Billion; Grand total: $182 Billion, ($150 billion Bond Ceiling Window).