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Overview: Thu, April 02

Daily Agenda

Time Indicator/Event Comment
08:30International tradeNarrower deficit in February
08:30Jobless claimsAnother huge increase in the latest week
10:00Factory ordersRoughly flat in February
11:003-yr, 10-yr (r) and 30-yr (r) coupon announcementNo changes expected
11:003- and 6-month bill announcementIncreases expected
11:301- and 2-month bill auction$80 billion and $60 billion respectively
13:00Treasury CMB auctions$40 billion of 154-day bills and $40 billion of 102-day bills

US Economy

Federal Reserve and the Overnight Market

  • Fed Highlights for Thursday, April 2, 2020

     

    Today's updated operational schedule:

    Repo Operations

    • 8:15 am: up to $45 billion of 11-day RPs
    • 8:45 am: up to $500 billion of overnight RPs
    • 1:45 pm: up to $500 billion of overnight RPs

    Treasury Coupon Purchases

    • 9:50 am: 7-to 20-year sector, for around $5 billion
    • 10:40 am: 4.5- to 7-year sector, for around $9 billion
    • 11:20 am: 20- to 30-year sector, for around $4 billion
    • 12:20 pm: 2.25- to 4.5-year sector, for around $14 billion
    • 1:10 pm: TIPS 7.5- to 30-year sector for around $5 billion each
    • 2:00 pm: 20- to 30-year sector, for around $5 billion
    • 2:50 pm: 0- to 2.25-year sector, for around $19 billion

     

Treasury Finance

  • Treasury Highlights for Thursday, April 2, 2020

    11:00 am:  3- and 6-month bill announcements
    11:00 am:  3-year note; 10-year and 30-year reopenings announcements
    11:30 am:  1- and 2-month bill auctions
    1:00 pm:  102-day and 154-day CMB auctions

This Week's MMO

  • MMO for March 30, 2020

    This week’s MMO is the latest iteration (but, unfortunately, probably not the last) in our ongoing series of updated Treasury financing forecasts.  The bottom line is that bill issuance in Q2 will be massive but not unmanageable, and that the Treasury can (if it wants) wait until the second half of the year before making decisions about how quickly to increase its coupon offering sizes.

MMO Analysis