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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

Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish LiquidityTrader.com, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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