Treasury issuance news

Yes, the Treasury’s quarterly refunding announcement is now market moving news because of the enormous debts and deficits being accumulated. While they keep on growing, the Treasury’s news just now that they plan to borrow $760b in Q1 vs the estimate last fall of $815b has the Treasury market rallying and stocks following.

I’m guessing part of the reason for the lesser estimate is that the Treasury General Account is near its recent highs and Yellen will tap this rather than via more borrowing. There is also political maneuvering on the part of Janet Yellen in wanting not to spook the Treasury market. We’ll hear in coming days the complexion of the issuance in terms of maturities and I’m sure again Yellen will tilt to the short end.