It plans to sell $112 billion in its quarterly refunding next week, which will raise $9.8 billion in new cash and refund $102.2 billion in securities. This will include $48 billion in three-year notes, $40 billion in 10-year notes and $24 billion in 30-year bonds.
The Treasury said it plans to increase the size of its two-year and five-year auctions by $3 billion per month, and to increase the size of its 3-year and 7-year auctions by $2 billion and $1 billion per month, respectively.
It will increase the size of its 10-year new issue and reopenings by $2 billion and raise its $30-year bond new issue and reopenings by $1 billion. The 20-year bond auction sizes will remain unchanged.
The Treasury will also increase the size of its two-year floating rate note new issue and reopenings by $2 billion.
Some Treasury Inflation-Protected Securities (TIPS) auction sizes will also be increased, with a $1 billion increase in the December 5-year TIPS auction and January 10-year TIPS auction.
The Treasury also said it expects to implement “modest reductions” to short-dated bill auctions by early December, which are expected to be maintained through mid- to late-January. The bill auctions will be held at current levels through late in November.
It is also considering changing its regular 6-week cash management bill to a benchmark, and will announce this decision at the next refunding. The Treasury added that it continues to make “significant progress” on its plans to launch a regular buyback program in 2024.
Source: Economy - investing.com
