(MENAFN- Kuwait News Agency (KUNA)) The U.S. Department of Treasury announced Wednesday it will auction USD 72 billion of the country's debt in mid-May following the latest data economic reports that show a slow-down in job growth and manufacturing.
The department will sell a combined USD 72 billion in new three-year, 10-year and 30-year notes and bonds next week at its May quarterly refunding, matching the same amount sold in February. It expects to raise USD 35.3 billion in new cash from the debt sales.
The auction coincides with federal and independent reports showing a lag in job growth and factory output in April.
U.S. payroll processor Automatic Data Processing (ADP) said companies added 119,000 jobs in April, falling short of the expected 177,000 increase and the smallest monthly rise in seven months. The March increase was revised down to 201,000 from 209,000.
The government said factory orders fell 1.5 percent in March on a hefty 4 percent drop in durable goods orders. Economist had predicted a 1.6 percent decrease.
The Treasury said it has not decided whether to begin issuing floating-rate securities or to accept negative yield bids at regular bill and coupon debt auctions.
Separately, the Federal Reserve on Wednesday said it was selling USD 1.34 billion to USD 1.5 billion worth of U.S. Treasury inflation-protected securities (TIPS) maturing January 2014 through April 2015. It sale is part of the Fed's latest stimulus program "Operation Twist" that involves selling short-term debt and buying longer-term debt.
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