• Wednesday, May 4, 2016 - 17:01


    --Estimates Vary But Timeline Anyone's Guess

    WASHINGTON (MNI) - In the interconnected global economy, negative interest rates in Japan and the euro area create more demand for the positive yield of U.S. treasuries, holding down interest rates despite Federal Reserve intentions to raise them - and softening the cost of servicing the $19.2 trillion U.S. national debt.

    The capital flows that bind the U.S., Japan and Europe are among many reflected in a kaleidoscope of U.S.

  • Wednesday, May 4, 2016 - 16:53


    * The U.S. economy apart from manufacturing is "humming along," the Institute for Supply Management survey chief said Wednesday, with no obvious signs domestic business activity is feeling much pain from the slowness overseas. The ISM non-manufacturing index was 55.7 for April, above the 54.8 median expectation in an MNI survey although still below the 12-month average, elevated because of the strong third quarter of last year. "When you look at new orders, at 59.9, this bodes well for what might be in the pipeline," ISM survey chief Tony Nieves told reporters. New orders rose 3.2 points.

  • Wednesday, May 4, 2016 - 09:40


    WASHINGTON (MNI) - The following are selected titles accompanying charts from the chart pack U.S.

  • Wednesday, May 4, 2016 - 08:52


    WASHINGTON (MNI) - The following is the report of the Treasury Borrowing Advisory Committee to U.S. Treasury officials with recommendations on financing policy prepared in advance of Wednesday's quarterly refunding announcement and published Wednesday:

    Report to the Secretary of the Treasury from the Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association

    5/4/2016

    May 3, 2016

    Letter to the Secretary

    Dear Mr. Secretary:

    Since the Committee last met in early February, the pace of economic activity has slowed noticeably. Annualized real GDP growth slowed in the first quarter to 0.5%, compared to 1.4% and 2% in the fourth and third quarters of 2015, respectively.

  • Wednesday, May 4, 2016 - 08:52


    WASHINGTON (MNI) - The following is the second section of the report of the Treasury Borrowing Advisory Committee to U.S. Treasury officials with recommendations on financing policy prepared in advance of Wednesday's quarterly refunding announcement:

    Continued:

    Against this economic backdrop, the Committee reviewed Treasury's May 2016 Quarterly Refunding Presentation to the TBAC. During the first quarter of 2016, tax revenues were weaker than during the equivalent period last year, while Treasury net expenditures rose due to higher interest expense and increased Medicare outlays. Treasury projects a net borrowing need of $687 billion for FY 2016.

  • Wednesday, May 4, 2016 - 08:44


    WASHINGTON (MNI) - The following is the second and final section of the minutes of the Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association meeting with U.S. Treasury officials held Tuesday, prior to Wednesday's quarterly refunding announcement and their publication:

    Continued:

    Next the presenting member turned to the effect on other sovereign debt issuers. It was noted that record low interest rates in Europe are having several broad effects. Peripheral sovereign issuers in Europe appear to be skewing issuance towards longer maturities.

  • Wednesday, May 4, 2016 - 08:42


    WASHINGTON (MNI) - The following are the minutes of the Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association meet with U.S. Treasury officials held Tuesday, prior to Wednesday's quarterly refunding announcement and their publication:

    The Committee convened in a closed session at the Hay Adams Hotel at 11:40 a.m. All members were present. Acting Assistant Secretary for Financial Markets Daleep Singh, Deputy Assistant Secretary for Federal Finance James G. Clark, and Director of the Office of Debt Management Fred Pietrangeli welcomed the Committee. Other members of Treasury staff present were Deputy Director John Dolan, Jonah Crane, Jared Roscoe, Ken Phelan, Michael Puglia, Gabe Mann, Tom Katzenbach, and Chris Cameron.

  • Tuesday, May 3, 2016 - 18:10


    --Restructuring Debt Is Crucial for Puerto Rico
    --Bipartisan Deal Possible On Business Tax Reform
    --Tys's Policies Have 'Slowed Down' Inversions

    LOS ANGELES (MNI) - U.S. Treasury Secretary Jack Lew said Tuesday Congress must act soon to assist financially troubled Puerto Rico, arguing that legislation is needed to prevent the "complete unwinding of normal life" on the island.

    In a question and answer session at the Milken Global Conference, Lew said he has tried to impress upon lawmakers that debt restructuring for Puerto Rico and a taxpayer-financed bailout are the "polar opposites."

    Lew said legislation should allow for a carefully designed debt restructuring process for Puerto Rico.

  • Tuesday, May 3, 2016 - 16:56


    * Atlanta Federal Reserve Bank President Dennis Lockhart said Tuesday he considers the mid-June meeting of the Fed's policymaking Federal Open Market Committee a "live" and "real" option for raising the federal funds rate again. Lockhart said the FOMC positioned itself well for a possible rate hike with its April policy statement and said that, as far as he's concerned, a new case for raising rates does not need to be made "from square one." Rather, he would only want to see evidence "invalidating" his assumption that the economy will rebound from a weak first quarter to oppose raising rates on June 15, he told reporters on the sidelines of the Atlanta Fed's annual Financial Markets Conference.

  • Tuesday, May 3, 2016 - 16:26


    --Failure to Reform Could Cost Global Economy Yr's Worth of GDP

    WASHINGTON (MNI) - In the next five years, the global economy will lose an estimated 3.9% of global output should countries not return to a more balanced mix of monetary and fiscal policy implementation in favor of continued reliance on central bank action, International Monetary Fund Capital Markets Director Jose Vinals said on Tuesday.

    "Monetary policy still has power, but with decreasing returns," he said. "The benefits of unconventional monetary policies are getting lower.

    "I still think (the benefits) are higher than the costs, so monetary policy should remain accommodative in advanced economies," Vinals said.