The U.S. Department of the Treasury has announced plans to issue $125 billion in Treasury securities to refund approximately $106.2 billion of maturing Treasury notes and bonds. This issuance aims to raise around $18.8 billion in new cash from private investors. The offerings include a 3-year note worth $58 billion, a 10-year note for $42 billion, and a 30-year bond totaling $25 billion.
The auction for the 3-year note is scheduled for February 11, 2025, followed by the 10-year note on February 12, and the 30-year bond on February 13. All auctions will occur at 1:00 p.m. ET and settle on February 18, 2025.
Treasury's financing requirements for the quarter will be met through regular bill auctions, cash management bills (CMBs), monthly notes, bonds, Treasury Inflation-Protected Securities (TIPS), and Floating Rate Note (FRN) auctions.
According to the Treasury, "Based on current projected borrowing needs, Treasury anticipates maintaining nominal coupon and FRN auction sizes for at least the next several quarters."
Auction sizes from November 2024 to January 2025 have been detailed along with anticipated sizes for February to April 2025.
In terms of TIPS financing, "Treasury believes it would be prudent to continue with incremental increases to TIPS auction sizes." Planned adjustments include maintaining the February auction size at $9 billion and increasing March and April auction sizes.
Regarding bill issuance, since January 21, extraordinary measures have been employed due to debt limit constraints. Variability in benchmark bill issuance is expected until changes are made to the debt limit.
For CMBs, "Treasury plans to transition the 6-week CMB to benchmark status," with initial announcements set for mid-February.
Buyback operations are also outlined. Weekly liquidity support buybacks will total up to $4 billion per operation in nominal coupon securities. In addition, two operations each of up to $2 billion will occur over longer-maturity buckets during this period.
Finally, buybacks around tax season aim "to temper reductions" in bill auction sizes that might otherwise happen.
Comments or suggestions regarding debt management can be sent via email as provided by the department. The next quarterly refunding announcement is scheduled for April 30, 2025.
