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Wednesday, June 1, 2011

Treasury sells $119 bln in notes yesterday. I thought we had a debt limit?



This was on the Treasury's Daily Statement today:

Apparently the Treasury sold $119 bln in notes on Tuesday, but that did not count against the debt limit. Was wondering what these notes were. Anybody? Anybody?

6 comments:

  1. Why doesn't the USA sell off $14 trillion dollars worth ot debt? Hey, let's make it $20 trillion.

    Happy hour all round.

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  2. because they don't need to, you spend first and then you issue bonds, if there is no spending then there is no point.

    anyway a country that issues its own currency doesn't technically *need* to "sell off" debt

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  3. August 2nd is the drop down date. Hahahahaha

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  4. Appears the auction proceeds were for refunding maturing debt because the outstanding issues went from 14,345,428,204,844.19 on the 31-May to 14,344,668,281,211.01 on 1-June. I listed out the cusip list for maturing debt over a couple days and there are a few issues that matured/will mature in the next day or so.

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  5. Thanks, TB. Not getting this info anywhere else but here, I can assure you.

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  6. Tsy is sailing mighty close to the wind.
    Total Public Debt
    Subject to Limit 14,293,975
    Statutory Debt Limit 14,294,000

    $25 million is 0.3% of the $8.3 billion the Fed rebated to Tsy in May alone. Sooner or later, Congress will figure out they can just outsource the whole messy business of taxes with Fed transaction fees / earnings rebates. :o)
    http://www.scribd.com/doc/25299549/Feige-APT-Presentation-to-Tax-Reform-Panel-2005

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