The United States Department of the Treasury has announced a plan to offer $125 billion in Treasury securities to refinance $94.2 billion in privately-held Treasury notes maturing on May 15, 2025. This offer will generate approximately $30.8 billion in new cash from private investors. The securities in question include a 3-year note worth $58 billion, a 10-year note valued at $42 billion, and a 30-year bond amounting to $25 billion.
The auctions are scheduled as follows: the 3-year note on Monday, May 5, 2025, the 10-year note on Tuesday, May 6, 2025, and the 30-year bond on Thursday, May 8, 2025. All auctions will occur at 1:00 p.m. ET on their respective dates and settle on May 15, 2025.
The Treasury plans to meet additional financing requirements for the quarter with routine bill auctions, cash management bills, and monthly auctions of notes, bonds, Treasury Inflation-Protected Securities (TIPS), and 2-year Floating Rate Notes (FRN).
"Treasury believes its current auction sizes leave it well positioned to address potential changes to the fiscal outlook and to the pace and duration of future SOMA redemptions," stated the Treasury.
The department has outlined projections for auction sizes from May to July 2025. Possible variations in borrowing needs will be addressed by adjusting bill auction sizes and/or cash management bills.
Treasury plans to incrementally increase TIPS auction sizes over the upcoming quarter. The May 10-year TIPS reopening auction will remain at $18 billion. The June 5-year TIPS reopening auction will rise by $1 billion to $23 billion, while the July 10-year TIPS new issue auction will increase by $1 billion to $21 billion.
Debt limit constraints will continue to create variability in bill issuance until the debt limit is adjusted. Treasury also evaluates enhancements to its buyback program, aiming to improve liquidity support and cash management. The program has been "well received and has increased the resilience of the Treasury market."
Treasury plans to conduct regular buybacks, including weekly buybacks of nominal coupon securities and planned operations in longer-maturity buckets and TIPS. A projected $30 billion will be purchased across liquidity support buckets and up to $20 billion for cash management purposes.
On June 3, 2025, Treasury will update its systems for buyback processing and disclosure, affecting XML files available on TreasuryDirect. Since January 21, 2025, Treasury has utilized extraordinary measures for temporary government financing, which lasts remains uncertain. An update will be provided in early May following April's tax filing season.
Additionally, Treasury will host a virtual workshop on June 27, 2025, focused on Large Position Report rules. More information is accessible through the Treasury's official website.
The next quarterly refunding announcement is scheduled for July 30, 2025.
