Treasury cuts borrowing size for first time since 2010


The Treasury says it will borrow $1B less at its next debt auction, cutting the size of its 2-year offering to $34B from $35B. It's the first cut in borrowing since September 2010, according to rate strategist Ian Lyngen. The size of the offerings of other maturities remains the same.

The move comes as the Fed prepares to taper its QE asset purchases. Jeff Gundlach several months ago suggested tapering would begin not because of an improving economy, but because the Fed would have less Treasury paper it needed to mop up.

TLH, TLT, IEF, DTYL, DLBL, ILTB, TENZ, ITE, TLO, EDV, VGIT, VGLT, TMF, TYD, LBND, UBT, UST, TMV, TYO, DSTJ, DSXJ, SBND, PST, TBT, DTYS, DLBS, TBF, TTT, TYNS, TYBS, TBX.

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Comments (6)
  • The_Hammer
    , contributor
    Comments (5093) | Send Message
     
    $1 bil cut? damn joke. They are getting a little frightened that this bond interest rate backup snowballs into a confidence issue. Rock bottom interest rates have kept a lid on interest expense as public debts have zoomed higher. probably fed will stop paying interest on bank reserves to push banks to lend to non-qualified borrowers. Qualified borrowers do not need to borrow and cannot make up the slack. Gotta get back to the fog a mirror standard again to juice things up.
    22 Aug 2013, 12:10 PM Reply Like
  • bbro
    , contributor
    Comments (11227) | Send Message
     
    Mini reverse taper??
    22 Aug 2013, 12:10 PM Reply Like
  • The_Hammer
    , contributor
    Comments (5093) | Send Message
     
    taper this? These fed propaganda clowns will come up with a new ponzi scheme name.
    "Reflate" is coming.
    22 Aug 2013, 12:14 PM Reply Like
  • youngman442002
    , contributor
    Comments (5123) | Send Message
     
    The higher interest rates are scaring them...alot
    22 Aug 2013, 12:20 PM Reply Like
  • Val Halla
    , contributor
    Comments (305) | Send Message
     
    i think the lack of "liquidity" in the form of issuance is a big reason why interest rates are surging here...they could move much higher from here although i'm currently not betting on it. a lot will depend on the trade deficit numbers in my view. i still think the Fed is tapering FAR too early but clearly it is so far HIGHLY supportive of the dollar and dollar based economies. (for example "build shopping malls in Ecuador" or "skyscrapers in San Salvador" sounds like a plan.) a "new energy matrix" has been created and deployed inside the USA and the expense of trying to create such a thing "in your country" is prohibitive indeed since it simply overlays the old oil based one (which overlaid coal which overlaid hydro). i think if the policy folks were smart here they would immediately ban the exporting of ethanol and diesel fuel but obviously i'm not expecting that.
    22 Aug 2013, 12:28 PM Reply Like
  • Peregrinus
    , contributor
    Comments (124) | Send Message
     
    Imagine if the FED could get away with it! Paying 20% of the government's current bills and liquidating $2 trillion by just printing money. Why not pay off the entire debt and pay all the bills this way?
    22 Aug 2013, 08:58 PM Reply Like
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