TBAC Report and Minutes
Mega supply on the way.
Several members agreed that, if done gradually, the 2-year note could be increased to nearly $50 billion for each offering, the 5-year could reach $45 billion, the 10-year could go up to $28 billion with re-openings of $25 billion each, and the 30-year could move to $20 billion with re-openings of $17 billion. One caveat offered by a member was that upward ranges on the 7-year note should be taken more cautiously as Federal Reserve purchases of on-the-run 7-year notes distorts the market demand for the security.