U.S. Treasury to Maintain Current Debt Issuance Levels Through October

The U.S. Treasury Department will maintain its debt issuance volume for the three months ending in October at the same level as the previous three months. The bidding sizes for coupon-bearing bonds and floating-rate notes from August to October have been set at the same level as the preceding three months, and the Treasury plans to maintain its issuance volume for at least the next few quarters based on current borrowing demand projections. However, the Treasury has changed its wording from 'increase' to 'fluctuate,' suggesting the possibility of future changes in debt issuance volume.

Since taking office, Treasury Secretary Scott Bessent has opted to maintain a high proportion of Treasury bills. The Treasury is currently reviewing structural demand trends and potential cost and risk factors associated with various issuance profiles.

To support market liquidity, the Treasury will purchase up to $38 billion in Treasury bonds, and for cash management purposes, it will buy up to $25 billion in maturities ranging from one to two years.

Inflation-protected securities (TIPS) will be auctioned at $8 billion for 30-year bonds in August, $19 billion for 10-year bonds in September, and $26 billion for 5-year bonds in October. Over the next three days, a total of $125 billion in Treasury auctions will be conducted, refinancing $96.3 billion in maturing debt on the 15th and raising $28.7 billion in new cash.