MNI BRIEF: US Treasury Maintains Steady Issuance Guidance

The U.S. Treasury said Wednesday it will be borrowing USD125 billion to raise USD8.6 billion in new cash as part of its quarterly refunding auctions, carrying forward its guidance that auction sizes will stay steady in coming quarters and "is well positioned" for the fiscal outlook.

"Based on current projected borrowing needs, Treasury does not anticipate needing to increase nominal coupon or FRN auction sizes for at least the next several quarters," the department said in a statement.

Analysts expect the next upsizing to come in August-November 2025 or even early 2026, but much depends on the next administration and Congress's fiscal path. Most dealers think modest increases might be needed sometime between late-2025 and 2026, according to the TBAC advisory committee minutes.

Treasury will auction off USD58 billion in three-year notes Monday, USD42 billion in ten-year notes Tuesday, and USD25 billion in 30-year bonds Wednesday.

Anticipated Auction Sizes for the November 2024 to January 2025 quarter (in B USD)