News&Notes: Treasury Debt Arsenal Expansion

WASHINGTON, Nov 3 (Reuters) - Facing the need to borrow up to a staggering $2.1 trillion in the current fiscal year to fund economic rescue programs, the U.S. Treasury is expected to significantly expand its debt securities arsenal. Analysts anticipate that the Treasury on Wednesday will announce the return of the 3-year note and adopt more frequent offerings of 10-year notes and 30-year bonds. It may also consider more reopenings of shorter maturities. "They are going to pull out all the stops. There's a good chance they'll come back to a quarterly 3-year note, monthly 5-year (note) auctions and increase issuance pretty subtantially across the board," said Kim Rupert, head of global fixed-income analysis at Action Economics in San Francisco. The Treasury Department said on Monday it would need to borrow a record $550 billion in the October-December quarter, including a likely $300 billion in financing for Federal Reserve liquidity operations. The total was $408 billion higher than previous estimates announced in July 2008 due to outlays for economic assistance programs, lower tax receipts and lower issuance of non-marketable debt securities to state and local governments. The Treasury anticipates $368 billion in borrowing in the January-March quarter. The Treasury said a survey of 18 primary bond dealers showed a consensus for a fiscal 2009 federal budget deficit of $988 billion -- more than than doubling the record $455 billion deficit in fiscal 2008, which ended Sept. 30. The dealer consensus for fiscal 2009 marketable borrowing was $1.4 trillion, with a range of $1.1 trillion to $2.1 trillion….