The US Treasury has revised the guidance it has used since early 2024 on sales of notes and bonds, potentially creating scope for changes to auctions of the longest-dated debt in 2027.
“Based on current projected borrowing needs, Treasury anticipates maintaining nominal coupon and FRN auction sizes for the next several quarters,” the department said in a statement Wednesday. FRNs are floating-rate notes.
For more than two years, Treasury officials had said auction sizes would remain unchanged for “at least” several quarters. The updated statement instead describes the expected period as “the next several quarters.”
Sources: Bloomberg Markets.