Treasury Auction Watch: Treasury Auction Schedule for Week Of 7/6/2009

Thursday, July 2, 2009

Treasury Department will auction the following Treasury securities in the week of July 6, 2009.

Monday July 6, 2009

Tuesday July 7, 2009

Wednesday July 8, 2009

10-year note: $19 billion (this is a reopening; original issue was May 15, 2009)

Thursday July 9, 2009

30-year bond: $11 billion (this is a reopening; original issue was May 15, 2009)

Total for the week: $136 billion

(No more notes and bonds are scheduled to be auctioned until the last week of July.)

Terminology
SOMA	System Open Market Account at the Federal Reserve New York Bank
Primary Dealer	A bank or securities broker-dealer that may trade directly with the Federal Reserve System. Primary Dealers are required to bid at Treasury auctions. Current list of Primary Dealers is available at New york Fed.
Indirect Bidder	Supposed to be the foreign investors, both foreign central banks and foreign private investors
Bid to Cover ratio	The number of bids received divided by the number of bids accepted. The higher the ratio, the higher the demand.
Reopening	The U.S. Treasury issues additional amounts of a previously issued security. The reopened security has the same maturity date and coupon interest rate as the original security, but with a different issue date and usually a different purchase price.
Cash Management Bill (CMB)	A short-term security sold by the U.S. Department of the Treasury. The maturity on a CMB can range from a few days to six months. The money raised through these issues is used by the Treasury to meet any temporary shortfalls. CMBs tend to pay higher yields than bills with fixed maturities, but their shorter maturities lead to lower overall interest expense.
Supplementary Financing Program (SFP)	A program initiated by the U.S. Treasury Department at the request of the Federal Reserve in September 17, 2008. The cash raised from the auction will be used in the various Federal Reserve initiatives to support the financial markets and manage its balance sheet.