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.
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