Halister News

(Bloomberg) -- Treasury is likely to increase monthly coupon auction sizes by $1 billion across all instruments beginning with the November refunding, JPMorgan strategists led by Jay Barry say in Oct. 27 note. They expect Nov. 1 refunding announcement to include $25b 3Y, $24b 10Y and $16b 30Y, and for Treasury “to communicate” $1b increases in December 2Y and 3Y to $28b and $26b.

• Treasury’s borrowing needs “are likely to increase materially over the next few years” owing to Fed SOMA normalization and tax overhaul, and current auction schedule will leave the government underfunded by $301b in FY2018
• Near-term projected financing needs “have eased somewhat,” raising risk that Treasury will wait until February to increase coupon auction sizes
• Separately, Treasury “may charge TBAC with further exploration” on resuming 20Y issuance or introducing a 50Y zero coupon bond

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net To contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net Mark Tannenbaum

(Bloomberg) -- Following are forecasts for today’s economic releases as compiled by Bloomberg News.

• Per. Income 0.4% m/m; range -0.1% to 0.5% (65 estimates)
• Per. Spending Nom. 0.9% m/m; range 0.4% to 1.2% (67 estimates)
• In the second quarter, consumer spending expanded at a 2.4 percent pace, less than the prior quarter. Autos accounted for much of the gain, according to gross domestic product data issued Oct. 27.
• Pers Spend Infl Adj 0.5% m/m; range 0.3% to 0.7% (10 estimates)
• PCE Deflator 0.4% m/m; range 0.3% to 0.5% (38 estimates)
• PCE Deflator 1.6% y/y; range 1.5% to 1.7% (29 estimates)
• Core PCE Prices 0.1% m/m; range 0% to 0.4% (51 estimates)
• Core PCE Prices 1.3% y/y; range 1.3% to 1.6% (34 estimates)
• Dallas Fed 21; range 19 to 22 (5 estimates)

To contact the reporters on this story: Chris Middleton in Washington at cmiddleton2@bloomberg.net; Vincent Del Giudice in Denver at vdelgiudice@bloomberg.net To contact the editors responsible for this story: Alex Tanzi at atanzi@bloomberg.net Kristy Scheuble