Eyes on the US Treasury with borrowing requirements to come

<p>The Fed decision is the headliner on this week's US <a href="https://www.forexlive.com/EconomicCalendar" target="_blank" rel="follow">economic calendar</a> but the Treasury threatens to steal the show.</p><p>Today at 3 pm ET, the Treasury will release its quarterly borrowing requirements for Q1 while the details of auction sizes will come Wednesday at 8:30 am ET (which is 12:30 GMT due to the time change).</p><p>Borrowing sizes will go up due to swelling US deficits but the market is trying to figure out the weighting on the curve. The Treasury has been boosting long-dated issuance and larger auctions are one contributor to the blowout in yields last quarter. That's prompting speculation that they will lean harder on the short end.</p><p>Because of that, today's announcement is likely to be less of a market mover Wednesday.</p><p> A January buyback announcement is also likely to improve liquidity.</p>

This article was written by Adam Button at www.forexlive.com.