Treasury's Refunding Statement Hints At Increased Issuance In More Liquid Parts Of Yield Curve
Portfolio Pulse from Surbhi Jain
The U.S. Treasury has released its quarterly refunding statement, indicating a lower privately-held net marketable borrowing of $776 billion in Q1 FY 2024, primarily due to higher receipts offset by higher outlays. The Treasury is offering $112 billion in Treasury securities to refund approximately $102.2 billion of privately held Treasury notes maturing on Nov. 15, 2023. This issuance will raise new cash from private investors of approximately $9.8 billion. The Treasury Committee recommended considering increased issuance in more liquid parts of the yield curve. This news is particularly relevant to investors in the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) and the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:BIL).
November 01, 2023 | 2:55 pm
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NEUTRAL IMPACT
The U.S. Treasury's plans could impact the SPDR Bloomberg 1-3 Month T-Bill ETF (NYSE:BIL) as it may affect the yield and price of the T-Bills in the ETF.
The U.S. Treasury's issuance plans and the yield curve dynamics can affect the yield and price of the T-Bills in the ETF. However, the exact impact would depend on the market's reaction to these plans.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The U.S. Treasury's plans could impact the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) as it may affect the yield and price of the bonds in the ETF.
The U.S. Treasury's issuance plans and the yield curve dynamics can affect the yield and price of the bonds in the ETF. However, the exact impact would depend on the market's reaction to these plans.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75
NEUTRAL IMPACT
The U.S. Treasury's plans could impact the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) as it may affect the yield and price of the bonds in the ETF.
The U.S. Treasury's issuance plans and the yield curve dynamics can affect the yield and price of the bonds in the ETF. However, the exact impact would depend on the market's reaction to these plans.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 75