US treasury to sell $81 billion in securities next week

The US Department of the Treasury plans to sell $81 billion in securities to refund approximately $48.3 billion in securities maturing on 15 February 2010. This will also raise about $32.7 billion in new cash.

The long term securities are a 3-year note totaling $40 billion, maturing on 15 February 2013; a 10-year note in the amount of $25 billion, maturing on 15 February 2020; and a 30-year bond in the amount of $16 billion, maturing on 15 February 2040.

''Over the last two years, the Treasury has responded to increasing marketable borrowing requirements in a deliberate manner, consistent with our operating framework of being regular and predictable,'' the treasury said in a statement yesterday.

In addition to increasing issue sizes of coupon securities, the treasury has added several maturity points to the auction calendar and increased the frequency of coupon auctions.

''Treasury believes that auction sizes are at levels that give us the ability to adequately address a broad range of potential financing needs, while allowing the average maturity of debt to gradually extend,'' it said.

Early this week, the Obama administration released its $3.8 trillion budget for fiscal 2011. The deficit is projected at $1.6 trillion this year and $1.3 trillion next year (See: Obama's 2011 budget – playing the deficit game).