00:00No surprises in the Treasury auction announcements.
00:02They had told us that they were going to be able to meet the debt needs of the country
00:07without changing auction sizes, so they haven't.
00:10The U.S. is going to refund $125 billion in the quarter.
00:17The breakdown is $25 billion for 30-year bonds,
00:22$42 billion for 10-year notes, and $58 billion for 3-year notes.
00:26And these will all start their auction process next week.
00:30It is too early for major changes, but we do know that we're going to have a bigger debt
00:35coming with the additional money that the president wants to spend on defense.
00:40And also, the question is, how is Treasury and Fed going to work together on any of this stuff,
00:45which is what Kevin Walsh says should happen?
00:47We won't know that for a while until he takes office and gets a chance to sit down with Scott
00:51Besson
00:52and figure out if there's any kind of agreement they should make.
00:55Mike, language is important, and on the language from the Treasury,
00:58we've been told repeatedly that increases in note and bond issuance won't be expected
01:02for, quote, at least the next several quarters.
01:05Has that language changed at all this morning?
01:07Not changing yet.
01:08We would expect it maybe in the next quarter or two,
01:11but for right now, we're going to be at about the same through the fiscal year,
01:17which will end September 30th.
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