Closely-Watched Treasury QRA Produces No Real Surprises

The Treasury refunding announcement came and went without apparent incident on Wednesday, when coupons were left unchanged as expected, consistent with last quarter's guidance. The $125 billion refunding headline ($58 billion threes, $42 billion 10s, $25 billion for the long bond) was in line with expectations. Treasury reiterated that coupon increases are over for the foreseeable future. "Based on current projected borrowing needs, Treasury does not anticipate needing to increase nominal coup