Treasury Auction Watch: Treasury Auction Schedule for the Week of 10/26/2009

Sunday, October 25, 2009

The U.S. Treasury Department will auction the following Treasury securities this week.

Monday October 26, 2009

13-week bill: $29 billion
26-week bill: $30 billion
4-year 6-months TIPS (reopening, original issue April 2009; 912828KM1): $7 billion

Tuesday October 27, 2009

Wednesday October 28, 2009

Thursday October 29, 2009

Total for the week: $182 billion (without 4-week bill)

Total for October 2009 so far: $367 billion

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.