Treasury refunding announcement reveals most public sale sizes unchanged for a number of quarters

• Total refunding of $125B to raise $18.8B in new cash and refund $106.2B in securities
• $58 billion in 3s
• $42 billion in 10s
• $25 billion in 30s
• Statement

All the numbers are unchanged and that was expected.

The Treasury said there would be ‘greater than normal’ bill issuance until the debt ceiling is raised.

Bond market participants were worried the Treasury would remove the line “Treasury anticipates maintaining nominal coupon and FRN auction sizes for at least the next several quarters” but it was retained. It was introduced in Feb 2024.

There is a belief that Bessent will eventually weight issuance more to the long end.