Treasury Dealer Survey Seen as 'Risk Event' for Bond Market

Market participants will closely examine the quarterly questionnaire issued by the U.S. Treasury to dealers for signs that it may adjust its bond issuance strategy in next month's refinancing announcement. The Treasury Debt Management Office initiates the quarterly refinancing process by soliciting input from primary dealers. This quarter's questionnaire is scheduled for release on October 16, followed by a refinancing announcement on November 4. Ralf Preusser, an analyst at Bank of America, stated that reducing long-term bond supply may be necessary in the coming years, noting that market expectations have risen for the Treasury to announce a cut in long-term bond issuance in its upcoming statement. 'It is critical to hint at such changes in the October 16 dealer questionnaire to mitigate this risk,' he said. Dealers and the subsequent refinancing announcement are described as potential 'risk events' for the bond market. (Sina Finance)