UPDATE 1-US Treasury sets $75 bln refunding, to boost TIPS

Reuters ^ | 5 August 2009 | David Lawder

[Erik Latranyi]

WASHINGTON, Aug 5 (Reuters) - The U.S. Treasury said on Wednesday it would sell $75 billion in debt next week in a record quarterly refunding and announced plans to gradually increase issuance of inflation-indexed notes as its borrowing to fight a recession grows.

The Treasury said it would sell $37 billion in three-year notes US3YT=RR, $23 billion in 10-year notes US10YT=RR and $15 billion in 30-year bonds US30YT=RR, raising $14.9 billion in new cash.

The refunding comes as the U.S. government continues to break new borrowing records, selling over $6 trillion in gross Treasury debt for the first 10 months of fiscal 2009 and raising $1.4 trillion in new debt.

[Erik Latranyi]

Don't worry, the children will pay for this.

[Slapshot68]

Buy toilet paper, it’s worth more.

[Glenn]

I’m confused. They are selling $75b and only raising $14.9b in cash?

What step am I missing here?

[screaminsunshine]

They will soon have to tank the market in order to sell bonds.

[patton]

Time cost of money.

[mysterio]

Balanced budget amendment now.

[silverleaf]

These jokers couldn’t balance the budget if they seized 100% of every taxpayer’s income ...

[mysterio]

And they wouldn't be in office long if they tried.

Their jobs should be tied to fiscal discipline.

Pay for all new spending with new taxes, and end withholding. Taxpayers should have to write a check for the taxes they owe so they can see what they are paying.

Problem solved.

[LikeLight]

Balanced budget amendment now.

Oh, we're way beyond that phase. This is unbalanced budgeting on steroids. We're not only borrowing money from others but now we're borrowing it from ourselves. The Fed is buying debt straight from Treasury. In other words, we're printing money to lend to ourselves. Nasty scenario.

[silverleaf]

and Congress should get a paycut every time they overspend their authority

and should have to put up $2000 out of pocket for every bill they sponsor

[perchprism]

We are monetizing the debt, essentially printing money for free.

[C19fan]

I’m confused. They are selling $75b and only raising $14.9b in cash? What step am I missing here?

Most of Tresuries being auctioned will be used to roll-over old debt that is maturing.

[mysterio]

and should have to put up $2000 out of pocket for every bill they sponsor

That would be somewhat humorous.

What I would support, however, is impeaching any congressperson if they vote on a bill they didn't read in its entirety.

[upchuck]

‘tis but a drop in the bucket. We’re headed for some SERIOUS T-bill selling to pay for nobama’s toys. Hope the Chinese are agreeable.

Although it would be better if they are not. If nobody will buy our debt, the bozos in DC will have to make “other arrangements.” And that would be highly amusing.

[Cementjungle]

I’m confused. They are selling $75b and only raising $14.9b in cash?

Maybe Obama get's a finder's fee.

[upchuck]

Would you buy a T-bill
from this man?

[Erik Latranyi]

If nobody will buy our debt, the bozos in DC will have to make “other arrangements.” And that would be highly amusing.

The day you hear that the Treasury failed to auction off securities is the day the system crashes down.

Expect the stock market, the dollar and our status as the strongest economy to tank on that day.