Treasury 49-Day Bill Evidence of Growing Tax Shortfall

I missed this yesterday. The Treasury announced another surprise cash management bill (CMB), the second in 3 weeks. Like the first one, this one is for $20 billion. Tax receipts are not keeping up with the Treasury Borrowing Advisory Committee (TBAC) forecast just issued on February 2. The shortfall is now $43 billion over last 3 weeks.

If my math is correct, a total of $87 billion in net new Treasury debt will be settling next Wednesday and Thursday. Won’t that be interesting. Of course, the 29th is also the day of the next ECB Long Term Refinancing Operation. Next week could be “interesting times.” Stay tuned.

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Here are the details of the newest issue.

CUSIP: 9127955J6
Term and Type: 49-Day Bill
Offering Amount: $20,000,000,000
Auction Date: 02/28/2012
Issue Date: 03/01/2012
Maturity Date: 04/19/2012
PDF version of the announcement
XML version of the announcement

Tags: Advisory Committee, Auction, Cash Management, Central Banks, Critical Forces, February 2, Free Trial, Herd, Interesting Times, Issue Date, Liquidity, Machinations, Management Bill, Maturity Date, Professional Edition, Refinancing, Shortfall, Tax Receipts, Tbac, Treasury Bill, Treasury Bills, Us Housing Market

This entry was posted on February 24, 2012 at 11:01 am and is filed under Today's Markets, Wall Street Examiner Exclusives. You can follow any responses to this entry through the RSS 2.0 feed.