Assistant Secretary for Financial Markets Josh Frost presented the Quarterly Refunding Statement on April 29, 2024, outlining the U.S. Department of the Treasury’s plans for upcoming Treasury securities offerings. Frost announced, “The U.S. Department of the Treasury is offering $125 billion of Treasury securities to refund approximately $107.8 billion of privately-held Treasury notes maturing on May 15, 2024.” The issuance aims to raise new cash from private investors amounting to approximately $17.2 billion.
The upcoming securities offerings include a 3-year note of $58 billion maturing on May 15, 2027, a 10-year note of $42 billion maturing on May 15, 2034, and a 30-year bond of $25 billion maturing on May 15, 2054. Frost detailed the auction schedule, stating that the 3-year note will be auctioned on May 7, the 10-year note on May 8, and the 30-year bond on May 9, with settlements all scheduled for May 15, 2024.
Treasury’s financing needs over the quarter will also be met with various other auctions and bills. Frost mentioned, “Treasury plans to address any seasonal or unexpected variations in borrowing needs over the next quarter through changes in regular bill auction sizes and/or cash management bills (CMBs).”
Regarding the future financing plans, Frost stated, “Based on current projected borrowing needs, Treasury does not anticipate needing to increase nominal coupon or FRN auction sizes for at least the next several quarters.” He also highlighted the planned increases in TIPS auction sizes to maintain a stable share of TIPS as part of the total marketable debt outstanding.
In terms of bill issuance, Treasury aims to adjust auction sizes to ensure liquidity to meet cash needs and prepare for tax dates. Frost mentioned the introduction of the 6-week bill benchmark and the launch of the buyback program, with the first operation scheduled for May 29, 2024.
An important announcement was made regarding the upcoming Large Position Report (LPR) call, with Treasury planning to issue it within the next three months. Additionally, a virtual workshop on Treasury’s LPR rules is scheduled for June 7, 2024.
The article concluded with information on providing feedback to the Treasury on debt management-related subjects and announced that the next quarterly refunding announcement is set for July 31, 2024.
