Brian Smith, Assistant Secretary for Financial Markets | https://www.linkedin.com/in/brian-smith-74060563/
The U.S. Department of the Treasury has announced it will offer $125 billion in Treasury securities to refund about $98.2 billion of privately-held notes maturing on November 15, 2025. This move is expected to raise approximately $26.8 billion in new cash from private investors.
The offering includes a 3-year note totaling $58 billion, set to mature on November 15, 2028; a 10-year note for $42 billion, maturing on November 15, 2035; and a 30-year bond worth $25 billion, maturing on November 15, 2055. The auctions are scheduled for November 10, 12, and 13 respectively, with all settlements occurring on November 17.
Treasury indicated that the remainder of its financing needs for the quarter will be addressed through regular weekly bill auctions, cash management bills (CMBs), as well as monthly auctions for notes, bonds, Treasury Inflation-Protected Securities (TIPS), and two-year Floating Rate Notes (FRNs).
Regarding auction sizes and future planning, Treasury stated: "Treasury believes its current auction sizes leave it well positioned to address potential changes to the fiscal outlook and to the size and composition of the SOMA portfolio. Based on current projected borrowing needs, Treasury anticipates maintaining nominal coupon and FRN auction sizes for at least the next several quarters. 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."
For TIPS financing between November 2025 and January 2026, Treasury plans to keep the November reopening auction size for the 10-year TIPS at $19 billion. The December reopening auction size for five-year TIPS will increase by $1 billion to reach $24 billion. The January new issue auction size for ten-year TIPS will remain at $21 billion.
On bill issuance strategy, Treasury expects benchmark bill offerings to stay steady into late-November but may reduce short-dated bill auction sizes during December due to anticipated tax receipts. Bill auction sizes are likely to increase again by mid-January as fiscal outflows rise.
In terms of buybacks over the upcoming quarter, Treasury plans four operations each in both the 10-20 year and 20-30 year nominal coupon buckets—each up to $2 billion—and one liquidity support buyback up to $4 billion in other nominal coupon buckets. There will also be two operations in the one-to-ten year TIPS bucket (up to $750 million each) and one operation up to $500 million in the ten-to-thirty year TIPS bucket.
Cash management buybacks were paused in September but are expected to resume in December. Over the next quarter, up to $38 billion in off-the-run securities could be purchased across liquidity support buckets while up to $25 billion may be bought back in shorter-term buckets for cash management purposes.
As previously announced, direct buyback access will expand in early 2026 based on counterparty participation in auctions.
Treasury also intends "to conduct a small-value test auction using its contingency auction system" within three months but clarified: "This small-value test auction should not be viewed by market participants as a precursor or signal of any pending policy changes regarding Treasury’s existing auction processes."
Comments or suggestions related to debt management can be sent via email at debt.management@treasury.gov. The next quarterly refunding announcement is scheduled for February 4, 2026.
