U.S. Treasury to end 3-year notes
Published May 3rd, 2007
The U.S. government is ending three-year Treasury notes because budget deficits are shrinking, the U.S. Treasury Department said Wednesday.
“Discontinuing the three-year note will allow Treasury to ensure large liquid benchmark issuances, better balance its portfolio and manage the improving fiscal outlook,” Assistant Secretary for Financial Markets Anthony Ryan said in a statement. The department said, with deficits shrinking, it would now rely on longer-term and inflation-protected securities to raise money.
The department initially eliminated three-year notes in 1998, during an economic boom, and resumed them in 2003, as the U.S. government’s Iraq war borrowing hit a high point.
The final three-year note auction, valued at $14 billion, will take place Monday as part of the department’s $32 billion quarterly debt auctions.
The 10-year note will be auctioned Tuesday and the 30-year bond Thursday.
