The U.S. Department of the Treasury on Wednesday said it is offering $125 billion of Treasury securities to refund about $97 billion of privately held notes and bonds that mature on Nov. 15, 2026. A refunding replaces maturing debt with new securities. The sale will raise about $28 billion in new cash from private investors, the department said.
The offering has three parts: a $58 billion 3-year note, a $42 billion 10-year note and a $25 billion 30-year bond. The 3-year note matures Nov. 15, 2029, the 10-year note matures Nov. 15, 2036, and the 30-year bond matures Nov. 15, 2056. The statement came from Hunter McMaster, the Treasury’s assistant secretary for financial markets.
The auctions are set for 1:00 p.m. ET on Monday, Nov. 9 (3-year), Tuesday, Nov. 10 (10-year) and Thursday, Nov. 12 (30-year). All three will be held on a yield basis and will settle on Monday, Nov. 16. Treasury said the rest of its financing needs this quarter will be met through weekly bill auctions, cash management bills and monthly auctions of notes, bonds, inflation-protected securities and floating rate notes.
Treasury said it expects to keep nominal coupon and floating rate note auction sizes unchanged for the next several quarters, based on current projected borrowing needs. It said it is monitoring purchases of Treasury bills and growing private-sector demand for them. It also said it will keep evaluating possible changes to auction sizes and will talk with market participants. In any change, it said, it will aim to finance the government at the lowest cost over time.
For inflation-protected securities (TIPS), Treasury plans to hold auction sizes steady. The November 10-year reopening stays at $19 billion, the December 5-year reopening at $24 billion and the January 10-year new issue at $21 billion.
On bills, Treasury said it sees strong demand from a broad range of buyers. It expects to keep benchmark bill auction sizes unchanged into late November and may issue a short-dated cash management bill around the end of that month. It expects to cut shorter-dated bill auction sizes in December, when mid-month corporate and other tax payments are due. In January, it expects to raise auction sizes across the bill curve because of seasonal government spending.
Treasury also plans to change how it issues the 7-year note. The note will move from a monthly new issue to a quarterly new issue with two reopenings, similar to the 10-year note. New issues will come in March, June, September and December, with reopenings in the following two months. The change starts with the March 2027 new issue, which will be reopened in April and May.
Treasury is assuming a cash balance of $850 billion at the end of December. It estimates its cash account, the Treasury General Account, could peak at $1.025 trillion, plus or minus $50 billion, in late November and late January. The department said those levels fit its long-standing cash balance policy and reflect large expected outflows at those times.
Treasury also released a tentative buyback schedule. Over the quarter, it expects to buy up to $70 billion of off-the-run securities, meaning those other than the most recently issued, to support market liquidity. It also expects to buy up to $25 billion in the 1-month to 2-year maturity range for cash management.
The next quarterly refunding announcement is set for Wednesday, Feb. 3, 2027. Treasury asked for comments on debt management at debt.management@treasury.gov.
