$70 Billion In 3, 10 And 30 Year Coupons On Deck

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.






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