More on Next Week's TSY Auctions

Treasury announced a $65 bln 3-pronged package of coupons, as well as an $8 bln 10-year TIPS. The Treasury will sell $35 bln in 3-year notes on Tuesday, $19 bln in 9-year 10-month notes on Wednesday, and $11 bln in 29-year 10-month bonds on Thursday. All of those are unchanged from June levels. The TIPS, to be auctioned Monday, are also unchanged from their January level, the last time a new issue was sold. Additionally, the Treasury will sell $63 bln in 3- and 6-month bills on Monday, that's up $1 bln from this week's amount, with the increase in the 6-month tranche, bringing it to $31 bln. Next week's auctions could total $171 bln, including the 3- and 6-month bills, and assuming a $35 bln 4-week bill sale. Treasury yields are still sharply lower on the day, focused more on the weak employment data and looking to cover positions into the long weekend. After the well subscribed coupon auctions a couple of weeks ago, it looks as though the Street is confident this paper can be absorbed with little difficulty.