MNI: Treasury Keeps Auctions Steady, Ponders Increases

The U.S. Treasury Department said on Wednesday announced it has begun to preliminarily consider future increases in issuance, but added it does not anticipate raising auction sizes for notes and bonds for at least the next several quarters, in line with market expectations. 

Treasury anticipates maintaining auction "sizes for at least the next several quarters," the agency said in a statement. "Looking ahead, Treasury has begun to preliminarily consider future increases to nominal coupon and FRN auction sizes, with a focus on evaluating trends in structural demand and assessing potential costs and risks of various issuance profiles." 

The department will further sell USD58 billion in U.S. three-year notes, USD42 billion in 10-year notes, and USD25 billion in 30-year bonds next week. These were the same auction sizes for the same securities announced at the July refunding.

Treasury expects to maintain the offering sizes of benchmark bills into late-November,  and then implement modest reductions to short-dated bill auction sizes during the month of December. "Thereafter, by the middle of January 2026, Treasury anticipates increasing bill auction sizes based on expected fiscal outflows," the statement said. 

The agency had no major announcements for its buyback program. "It will purchase up to USD38 billion in off-the-run securities across buckets for liquidity support and up to $25 billion in the 1-month to 2-year bucket for cash management purposes." 

The table below presents, in billions of dollars, the actual auction sizes for the August to October 2025 quarter and the anticipated auction sizes for the November 2025 to January 2026 quarter: