- US Treasury announces $125 bln refunding through July 2026, to raise new cash of $41.7 bln
- US Treasury to keep coupon, floating rate note auction sizes unchanged for the next several quarters
- U.S. to sell $25 bln 30-year bonds on May 13, to settle on May 15
- U.S. to sell $58 bln 3-year notes on May 11, to settle on May 15
- U.S. to sell $42 bln 10-year notes on May 12, to settle on May 1
Separately, the U.S. Treasury said future increases in auction sizes will be guided by trends in structural demand as well as the potential costs and risks tied to its overall issuance profile. The department also signaled that it expects to further increase the size of shorter-dated benchmark bill auctions and may issue additional short-dated cash management bills to meet elevated liquidity needs around the end of May. Meanwhile, the Treasury projected that the Treasury General Account (TGA) cash balance could rise to as much as $1 trillion by late July (compared to $900B previously).
The increased funding needs are being focused on the shorter end vs spreading out along the curve. The 3 month t-bill yield is 3.68% vs 10 year yield of 4.35% currently
.
