U.S. Treasury announces details of upcoming quarterly refunding totaling $125 Billion

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Scott Bessent Secretary | U.S. Department Of Treasury

U.S. Treasury announces details of upcoming quarterly refunding totaling $125 Billion

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The U.S. Department of the Treasury announced it will offer $125 billion in Treasury securities to refund about $89.8 billion in maturing notes and bonds on August 15, 2025. This issuance is expected to raise approximately $35.2 billion in new cash from private investors.

The securities being offered include a 3-year note for $58 billion maturing August 15, 2028; a 10-year note for $42 billion maturing August 15, 2035; and a 30-year bond for $25 billion maturing August 15, 2055. The auctions are scheduled for August 5, 6, and 7 respectively at 1:00 p.m. ET, with settlement on August 15.

Treasury indicated that additional financing needs over the quarter will be met through regular weekly bill auctions, cash management bills (CMBs), as well as monthly note, bond, Treasury Inflation-Protected Securities (TIPS), and floating rate note (FRN) auctions.

"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," according to the statement by Deputy Assistant Secretary for Federal Finance Brian Smith. "Based on current projected borrowing needs, Treasury anticipates maintaining nominal coupon and FRN auction sizes for at least the next several quarters."

Auction size tables released by Treasury show that planned sizes remain steady across most maturities into October. Any seasonal or unexpected variations in borrowing requirements will be managed by adjusting bill auction sizes or using CMBs.

Regarding TIPS financing, Treasury plans incremental increases this quarter: keeping the August reopening of the 30-year TIPS at $8 billion; increasing September’s reopening of the 10-year TIPS to $19 billion; and raising October’s new issue of the five-year TIPS to $26 billion.

Since Congress raised the debt limit by $5 trillion on July 4, Treasury has increased bill issuance to finance government operations and rebuild its cash balance toward policy targets. It expects further marginal increases in short-term bill auction sizes in coming days before stabilizing levels through September. Additional increases are anticipated in October as market conditions allow.

On buybacks, enhancements have been introduced following feedback from market participants including primary dealers and members of the Treasury Borrowing Advisory Committee. "Treasury believes it is appropriate to: (1) double the frequency of long-end nominal coupon liquidity support buybacks, (2) make a technical adjustment to the TIPS buyback buckets, (3) increase the size of cash management buybacks, and (4) allow a limited number of additional counterparties to directly access buyback operations," according to Smith.

Buyback frequency for certain long-dated securities will double per quarter while maximum purchase amounts per operation remain unchanged. Adjustments also affect TIPS buckets with new maturity groupings introduced. The aggregate annual cap on cash management buybacks rises from $120 billion to $150 billion; however no such operations are expected around September tax dates due to ongoing efforts rebuilding cash balances.

Direct access for more counterparties based on their participation in Treasury auctions is planned for early-2026 with eligibility details forthcoming later this year.

Treasury has updated its buyback FAQs accordingly and intends ongoing evaluation of program enhancements at future refundings.

Additionally, an LPR call is expected within three months; previous guidance can be found at https://www.treasurydirect.gov/laws-and-regulations/gsa/lpr-reports/.

The next quarterly refunding announcement is set for November 5.

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