Quarterly refunding announcement: Will increase TIPS and bill auction sizes

• Total refunding of $125billion in May-July quarter, including $17.2b of new cash
• Will sell $58 billion in 3s, $42b in 10s and $25b in 30s
• To increase 5y TIPS by $1b to $21b
• To keep 10y TIPS at $16b
• Prudent to continue incremental increase in TIPS in May-July quarter
• Expects to increase 4, 6, and 8 week bill auctions in coming days
• Through July plans to hold weekly liquidity support buybacks of up to $2b per quarter

Yields are at the lows of the day after the announcement.

This article was written by Adam Button at www.forexlive.com.