TBAC Discussed Borrowing Shortfalls Due to Fed's Twist

Minutes from the Treasury advisory committee's last meeting showed members heeding near-term impacts of the Fed's Twist program on the government's borrowing needs. A member noted that the first round of Twist lowered Treasury's borrowing capacity through 2016 by $400B and that the extension of Twist to year-end lowered it by an additional $267B. The committee discussed ways to fill this gap, with some suggesting upping coupon sales and other suggesting increasing the size at T-bill auctions.