2018 Economic Calendar
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Treasury Refunding Announcement  
Released On 1/31/2018 8:30:00 AM

There were no surprises in the Treasury's announcement of the quarterly refunding of $46.6 billion of Treasury notes maturing on February 15, 2018, a $66 billion package that will raise $19.4 billion in new cash. The refunding package consists of $26 billion in 3-year notes, $24 billion in 10-year notes and $16 billion in 30-year bonds. The balance of funding needs will be met with the weekly T-bill auctions, cash management bills, the monthly note and bond auctions, the February 30-year Inflation-Protected Securities (TIPS) auction, the March 10-year TIPS reopening auction, the April 5-year TIPS auction, and regular monthly 2-year Floating Rate Note (FRN) auctions.

As it announced in November, the Treasury plans to increase auction sizes in order to respond to higher borrowing needs resulting from the change to the Federal Reserve's reinvestment policy for its System Open Market Account (SOMA) portfolio and the fiscal outlook. As a result, the Treasury anticipates that the sizes of 2- and 3-year note auctions will increase by $6 billion by the end of the quarter, and raise the size of the next 2-year FRN auction in February by $2 billion. In addition, starting in February, the Treasury will increase the auction sizes of each of the next 5-, 7- and 10-year notes as well as the 30-year bond auction issuance by $1 billion each. In total, these adjustments will result in an additional $42 billion of new issuance for the quarter.

Treasury noted it was at the debt limit level and has been taking extraordinary measures to finance the government on a temporary basis since December 8, when the Continuing Appropriations Act of 2018 and the Supplemental Appropriations for Disaster Relief Requirements Act of 2017 debt limit suspension expired. Expecting to be able to fund the government through the end of February, the Treasury urged Congress to act promptly on this matter.

With regard to Treasury transactions data and operations, Treasury noted that it is actively seeking a policy on the public dissemination of Treasury securities transaction data, assessing forms of dissemination that would support transparency and yet not harm market functioning and liquidity. Sometime over the next three months, Treasury intends to issue a Large Position Report (LPR) call. The last LPR was conducted on June 1, 2016.

Each quarter the U.S. Treasury announces its funding needs for the next two quarters. The announcement includes which securities will be offered and the dates of their announcement, auction and settlement.  Why Investors Care

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