Treasury to Refund $125 Billion, Sees Coupon Auction Sizes Steady for Next Several Quarters
The U.S. Department of the Treasury on November 4 released its quarterly refunding statement, offering $125 billion of Treasury securities to refund approximately $97 billion of privately-held Treasury notes and bonds maturing on November 15, 2026, and to raise new cash of approximately $28 billion from private investors. The statement was issued by Assistant Secretary for Financial Markets Hunter McMaster. The Treasury Department is headquartered in Washington.
The refunding consists of a $58 billion 3-year note maturing November 15, 2029, a $42 billion 10-year note maturing November 15, 2036, and a $25 billion 30-year bond maturing November 15, 2056. The 3-year note will be auctioned at 1:00 p.m. Eastern on Monday, November 9, 2026, the 10-year note on Tuesday, November 10, and the 30-year bond on Thursday, November 12; all auctions will be conducted on a yield basis and settle on Monday, November 16, 2026. The balance of financing requirements over the quarter will be met with weekly bill auctions, cash management bills, and monthly note, bond, Treasury Inflation-Protected Securities (TIPS), and 2-year Floating Rate Note (FRN) auctions.
Treasury said its current auction sizes leave it well positioned to address potential changes to the fiscal outlook and to the size and composition of the SOMA portfolio, and that based on current projected borrowing needs it anticipates maintaining nominal coupon and FRN auction sizes for the next several quarters. Treasury said it is monitoring SOMA purchases of Treasury bills and growing private-sector demand for bills, and continues to evaluate potential future changes to auction sizes, focusing on structural demand trends and the costs and risks of various issuance profiles, in consultation with market participants and guided by financing the government at the lowest cost over time. Under the statement's table, anticipated auction sizes for November 2026 through January 2027 are broadly unchanged from the prior quarter: $69 billion for the 2-year, $58 billion for the 3-year, $70 billion for the 5-year, $44 billion for the 7-year, $42 billion to $39 billion for the 10-year, $16 billion to $13 billion for the 20-year, $25 billion to $22 billion for the 30-year, and $28 billion to $30 billion for FRNs.
For TIPS, Treasury plans to maintain current auction sizes over the quarter: a $19 billion November 10-year TIPS reopening, a $24 billion December 5-year TIPS reopening, and a $21 billion January 10-year TIPS new issue. On bills, Treasury said demand remains strong from a broad range of market participants; it expects to maintain current benchmark bill auction sizes into late November and may issue a short-dated cash management bill around the end of November, expects to reduce shorter-dated bill auction sizes in December amid mid-month corporate and non-withheld tax receipts, and anticipates increasing bill auction sizes across the curve in January on seasonal fiscal outflows.
Treasury also announced a structural change: the 7-year note will be converted from a monthly new issue to a quarterly new issue with two reopenings, in March, June, September and December with reopenings in the following two months, effective with the March 2027 new issue; the note will continue to be auctioned toward the end of each month and to issue and mature at month end. On buybacks, Treasury released a tentative schedule anticipating purchases of up to $70 billion of off-the-run securities for liquidity support and up to $25 billion in the 1-month to 2-year bucket for cash management over the quarter. On cash, Treasury is assuming an $850 billion balance at the end of December, while estimating the Treasury General Account could peak at about $1.025 trillion, plus or minus $50 billion, in late November and late January.
On November 2, Treasury had announced its borrowing estimates, projecting $618 billion of privately-held net marketable borrowing for the October to December 2026 quarter and $800 billion for the January to March 2027 quarter; this statement provides the quarterly refunding details for those estimates. The next quarterly refunding announcement will take place on Wednesday, February 3, 2027.
Source: U.S. Department of the Treasury
Published by GSM · USA (original Chinese edition)
Photo: 图：位于华盛顿的美国财政部大楼东侧柱廊。来源：Wikimedia Commons。 / Photo: The east colonnade of the U.S. Treasury Building in Washington, D.C. Source: Wikimedia Commons.
