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Authorized for public release by the FOMC Secretariat on 2/25/2020 REC' RECORDS SECTION JAN 121960 To: Federal Open Market Committee From: Division of Research & Statistics, Board of Governors January 11, 1960 Subject: Timing of Treasury Financings in Calendar 1960 Attached are two charts showing the periods of 1960 in which the Treasury is likely to be financing. Chart I provides an estimate of the specific dates between which Treasury operations are expected to occur. Except for quarterly bill roll-over, financing periods run from announcement to settlement dates. settlement dates. For the bill roll-overs they run from auction to In addition to the financing periods charted, there is some possibility that the Treasury will have to raise cash after mid-February and mid-August as well. Chart II shows the periods of 1960 within which the Federal Reserve under normal policy procedures could be assumed to be maintaining an "evenkeel". In this chart it is presumed that "even-keel" periods would run from one week prior to the announcement of Treasury financings to one week following payment or settlement for such operations. As the chart shows, when one applies this "even-keel" criterion to all of the prospective financings for 1960, the only open periods remaining for policy action are the weeks surrounding the March, June, September, and December tax payment dates when the money and Government securities markets are likely to be unsettled by seasonal liquidity adjustments. Given the possible need for timely Federal Reserve action in the year ahead, rigid adherence to an "even-keel" policy in all of the prospective Treasury financings could well prove to be too restrictive a limit on Federal Reserve flexibility. Since a sizeable number of the charted financings will represent either the roll-over of outstanding bills or the sale of tax securities in anticipation of future receipts, and since the Treasury will be retiring debt on balance, it may develop that standards of an "even-keel" policy necessary in the past two years of heavy deficits will not need to be so rigidly applied this year. Attachments Authorized for public release by the FOMC Secretariat on 2/25/2020 ThfT*G ^? TRF-AS 3 ?TKi5CPTGS BT CALFDs Actual through Jaruary 15 Estimated thereafter 1/ CHART I 5 JANUARY t 20 25 15 5 FEBRUARY to rS 20 25 5 MARCH r0 15 20 25 APRIL 10 15 20 25 5 MAY 5 :0 15 20 25 JUNE 5 2 o JJLY 5 10 ' 2 5 -4 960 AUGUST 10 I5 20 5 25 NO\ EWBER 15 20 25 O-TCER 25 SC 5 2 25 5 10,5 22 5 nECEMBER 15 20 25 <---1---_ _ -9-i -I _ t -~ ---- i - 7 I~~ F tc= ~~~1~~~ I ~ ~ L= III, L~I -- 2Z -- -- I~I A iI~ x -r ,-_ Z5_ - Cc - _ ~_ _ _ ---_ _ _ -- - -- ~ ~-& - -i - -4z~ K- - I-=_Z .}-c -I Zi-~- -- -- -- " I ____o-t----- - -~ - =z=r =: - __ = ' _ - r -- : I 4 - -- <~: I> -s----- ___ -'--4 -~ ~ ____ L-#z~~~~ ___ I - ~ -~ -t--HH-~- - r *X4 - - ~1I- ~~j-'- ~ -7 7ii~I- - -- - . 5 10 15 20 25 JANUARY 5 1o 15 20 25 FEBRUARY 5 10 15 20 25 MARCH 3 1o 15 20 2S APRIL 5 1o 1s ao MAY 25 5 1o 1s zo JUNE For cash and refunding operations the bars represent periods between the estimated between auction and settlement dates. 23 0 5o 13 20 JULY announcement 25 5 10 13 20 AUGUST 23 - and settlement dates; 3 5 o : 20 25 SEPTEMBER 5 for quarterly bill -- 1o IS 20 25 OCTOBER -. S ~ 1 o 15 zo 25 NOVEMBER - -1 - - 5 10 15 20 25 D CEMBER rollovers they are the period Authorized for public release by the FOMC Secretariat on 2/25/2020 JANUARY 10 15 20 25 S 5 FEBRUARY 1o 15 20 25 5 MARCH 10 13 20 25 5 7 APRIL 10 15 20 -~ 25 MAY 10 15 20 5 25 10 5 - --4 r f-- 15 20 25 S AUGUST 10 15 20 OCTOBER SEPTEMBER 5 10 15 2025 25 5 10 15 20 5+ -4 44 -- JAiT. -gam , 10 15 20 DECEMBER 5 10 15 20 25 25 IIC-~C-~L CNE;-Y - --- ---- - - ---- Settle. _- 1/12 Settl. I --- - - -- 10/7 - - I -1 -- Auctioned - - -j I Ann Ic4 11/18 Settle. 11/2; II Settle. - - - _- ' -- Settle. - Annic 7 l 7F IF I - 1 r L --- - --- AI 7~il~7r - --- 10 15 20 25 JANUARY 5 10 15 20 25 FEBRUARY Time periods enclosed 5 10 15 20 MARCH by rectangles Fr I F-- h __ 2274 -z- 5 10 15 20 APRIL 25 5 t0 15 20 MAY 23 indicate weeks in which the Federal It is presumed that "even keel" periods run from one week such operations. 5 10 15 20 JUNE 25 5 10 15 20 25 JULY ~ __- L_ 25 l - 10/25 Settle. 11/15 - nrHI _ 1* +- ~ -l-- - Auctioned 10/11 Settle. 10/17 _ -_7/29 1 --- BILL ROLL- 4 - - - -- -- r-7/12 -- 5 10 15 20 25 AUGUST 5 10 5 20 25 SEPTENBER 5 10 15 20 25 OCTOBER - -- 5 -- -- 10 15 20 25 NOVEMBER Reserve under normal policy procedures could be assumed to be maintaining an "even keel." prior to the announcement --3 S/23 9- -- BILL 0 RO---LL---- 4 -. - ----- -7/15 77 1I HL .IONtS T= 7/ -- - - -rt - t1:1 -t - - Settle. - - Settle. - /16 2/15+- - d ~* L/29 11 - --- - R 'IUiJI1rL 4nn' ' Settle. -T TI S 6/24 -- - CN-YEAR BILL ROLL-CRAuctioned 4/12 Settle. R/i SI CASH Annic - ---- 4/5 A 0PA~:s --- L--- - - 3/2- - -------- O --- CASH Ann'cd AR - I- -11* APRIL-iI OPrRATIOtS OP'ERATITC)S Auctioned 1/ 5 4-- 44 BILL ROLL-OVER 5 NOVEMBER 25 1i§777i7 -ter CASE AnnIcrd 12/30 Settle. 1/v - 10 -+- -r=rF-- 5 _---- F, ~-4- JULY JUNE 15 20 25 1960 CALENDAR OFTREASURY FINANCINGS IN TIMING OF TIMING Actual through January 15 Estimated thereafter l/ CHART 11 of Treasury financings to one week following payment or settlement dates on 5 10 15 20 25 DECEMBER
@FedFRASER