The US Treasury has announced its coupon issuance timetable for next week. The US will auction off a total of $70 billion in 3, 10 and 30 years next week. In a surprising move, this number is more than a 10% decline from like issuance in the last month: the last pair of 3-10-30 raised a total of $78 billion. Is the US Treasury seriously "telegraphing" that the budget deficit situation is under control? What happens when the cash crunch gets acute again courtesy of half a trillion in Bill redemeptions this month and issuance has to work overtime just to catch up. This seems like a very foolhardy move.
- June 8, $36 billion 3 Year Bonds ($38 billion prior)
- June 9, $21 billion 10 Year Bonds ($24 billion prior)
- June 10, $13 billion 30 Years Bonds ($16 billion prior)