There were no surprises in the Treasury's announcement of the quarterly refunding of $45 billion with a $62 billion issuance package that will raise $17.0 billion in new cash. As in the previous 4 quarters, the refunding package consists of $24 billion in 3-year notes, $23 billion in 10-year notes and $15 billion in 30-year bonds. The Treasury plans to maintain coupon issuance at current levels over the coming quarter, with any changes in seasonal borrowing needs to be met by changes in regular T-bill auction sizes or by issuing cash management bills. The Treasury continues to expect T-bill supply to increase to a prudent level based on the current auction schedule. With no policy implications, the Treasury intends to conduct another test small-value buyback operation as well as a test small-value contingency auction operation during the quarter.