The Treasury may swamp the bond market with the announcement of a large quarterly refunding.
It will release estimates at the top of the hour and earlier estimated around $235 billion for Q4 but MNI is reporting on chatter the Treasury could raise more than $300 billion as it re-arms for a potential debt limit war in 2014.
If the Treasury were to sap an extra $85 billion, that would wipe out a month of QE buying. It’s all very absurd as the US takes money from one pocket, puts it in another and blocks itself from spending it.
There are no signs of worry in the bond market with 10-year yields down 2 basis points to 2.60% today.
