Nominal Coupon Auctions Sizes Seen Steady According to US Treasury Quarterly Refunding Announcement
The US Treasury expects to maintain its current nominal coupon and FRN auction sizes over the coming quarter, its refunding announcement released Wednesday showed."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," the Treasury said in its statement. "Based on current projected borrowing needs, Treasury anticipates maintaining nominal coupon and FRN auction sizes for at least the next several quarters."Next week, the Treasury will sell $58 billion of 3-year notes, $42 billion of 10-year notes, and $25 billion of 30-year bonds.Any unexpected borrowing needs will be met by changes in regular bill or cash management bill sizes, it said.Treasury also intends to maintain the sizes of its TIPS actions at the current levels and expects to hold its benchmark bill sizes at current levels in the coming weeks before reducing them in September and then raising them again in October due to seasonal flows.