The balance of Treasury financing requirements will be met with the weekly bill auctions, cash management bills, the monthly note and bond auctions, the February 30-year Treasury
Inflation-Protected Securities (TIPS) auction, the March 10-year TIPS reopening auction, the April 5-year TIPS auction, and the regular monthly 2-year Floating Rate Note (FRN) auctions.
Demand has reached 26,221 million euros, the highest demand for a 30-year Treasury
syndication, and the second largest for a European sovereign at that time.
7%, and the 30-year Treasury
has a total return of 21.
This Committee inquired into the 30-year Treasury
Bond issuance has made far reaching recommendations to ensure transparency and better governance at the Central Bank.
The Long-Term Treasury Bond futures are being launched in response to strong customer demand for a contract that mimics the duration of a 30-year Treasury
bond," said Robin Ross, CME Group Managing Director of Interest Rate Products.
This rate, according to the Retirement Protection Act (included as part of GATT), is the monthly yield on the 30-year Treasury
The pension community is very concerned about the prospect of the PGBC hiking premiums up to 20 percent a year, as well as the prospect of not having a comprehensive pension reform bill enacted this year and resorting back to a 30-year Treasury
For most companies, the only important component is the simplest one: for plan years beginning in 2004 and 2005, the interest rate for calculating current liability, the starting point for determining Pension Benefit Guaranty Corporation (PBGC) variable-rate premiums and whether a plan requires deficit-reduction contributions, will be based on a composite index of the yields on long-term, high-quality corporate bonds, rather than on 30-year Treasury
Companies have complained that the old formula, based on the interest rate paid by a 30-year Treasury
bond, made too many pension plans appear underfunded when they weren't.
The bill would provide a short-term, two-year pension funding fix to replace the current 30-year Treasury
bond interest rate that is used by many employers to calculate the amount of money they must set aside in their employee pension plans with a conservative corporate bond rate for two years through 2005.
8 without taking final action to replace the current 30-year Treasury
bond interest rate as the rate employers must use to calculate employee pension plan liabilities.
ERISA requires employers to use a variation of the 30-year Treasury
bond rate for these calculations; however, in 2001 Treasury stopped issuing the 30-year bond.