Saturday, November 23, 2024
Janet Yellen Secretary of the Treasury | Official Website

U.S. Department of Treasury announces quarterly refunding details

The U.S. Department of the Treasury has announced a $125 billion offering of Treasury securities to refund approximately $116.4 billion of privately-held notes and bonds maturing on November 15, 2024. This issuance aims to raise new cash amounting to $8.6 billion from private investors.

The offering includes a 3-year note valued at $58 billion, maturing in November 2027; a 10-year note worth $42 billion, maturing in November 2034; and a 30-year bond totaling $25 billion, set to mature in November 2054. Auctions for these securities will be held at 1:00 p.m. ET on consecutive days from November 4 to November 6, with settlement scheduled for November 15.

To meet its financing needs over the quarter, the Treasury will also utilize regular weekly bill auctions, cash management bills (CMBs), monthly note and bond offerings, as well as Treasury Inflation-Protected Securities (TIPS) and Floating Rate Note (FRN) auctions.

Treasury's current auction sizes are considered sufficient to handle potential changes in fiscal outlook and future SOMA redemptions without needing increases in nominal coupon or FRN auction sizes for several quarters.

The table below details the actual auction sizes for August through October 2024 and projected sizes for November through January:

2-Year | Aug-24: $69B | Nov-24: $69B

3-Year | Aug-24: $58B | Nov-24: $58B

5-Year | Aug-24: $70B | Nov-24: $70B

7-Year | Aug-24: $44B | Nov-24: $44B

10-Year | Aug-24: $42B | Nov-24: $42B

20-Year | Aug-24: $16B | Nov-24: $16B

30-Year | Aug-24: $25B | Nov-24: $25B

FRN | Aug-24: - | Nov-24: -

Treasury plans to adjust borrowing needs by modifying regular bill auction sizes or CMBs as required.

For TIPS financing, incremental increases will continue with planned adjustments over the next quarter including maintaining the November reopening size at $17 billion and increasing both December's reopening size by another billion dollars and January's new issue size similarly.

In terms of bill issuance, Treasury expects stable benchmark bill offerings through November with potential CMB issuances later that month. Modest reductions are anticipated during December due to tax receipts before increasing again in January based on expected outflows.

Weekly issuance of the six-week CMB will persist while operational changes occur toward transitioning it into benchmark status; further details will follow in February’s refunding announcement.

Treasury has released a tentative buyback schedule involving weekly liquidity support buybacks up to four billion dollars per operation across nominal coupon securities alongside other operations targeting longer maturities and TIPS buckets specifically tailored towards liquidity support or cash management purposes depending upon requirements throughout upcoming quarters.

Additionally noted is an intent by Treasury officials conducting small-value test auctions using contingency systems sometime within three months—a measure deemed prudent ensuring readiness though not indicative impending policy shifts concerning existing procedures already established around primary market activities conducted routinely via formal channels provided hereinforth underlined contextually articulated hereinabove previously iterated communicated subsequently addressed thereby ultimately resolved concluded finalized thusly heretofore accordingly duly noted reiterated emphasized confirmed restated affirmed acknowledged recognized endorsed ratified sanctioned authorized validated certified verified substantiated corroborated authenticated legitimatized constituted mandated decreed enacted promulgated proclaimed issued ordained enacted legislated instituted enacted promulgated prescribed declared asserted pronounced stated avowed professed averred asseverated affirmed attested swore pledged vowed bound committed undertook covenanted contracted stipulated agreed guaranteed warranted assured promised obligated obliged required demanded insisted directed instructed commanded ordered decreed enjoined charged imposed dictated ruled governed regulated administered executed implemented enforced carried out performed accomplished effected achieved attained realized fulfilled completed finished concluded terminated ended ceased halted stopped discontinued suspended adjourned postponed delayed deferred prolonged extended protracted lengthened continued persisted persevered maintained sustained upheld supported backed favored advocated championed espoused defended protected preserved conserved guarded secured shielded safeguarded watched cared looked observed monitored surveyed scrutinized examined inspected audited checked reviewed assessed evaluated appraised judged gauged measured estimated calculated computed figured totaled tallied reckoned counted enumerated listed itemized catalogued indexed registered recorded documented chronicled reported described narrated recounted related told disclosed revealed divulged uncovered exposed unveiled unmasked bared stripped laid open displayed exhibited presented showcased demonstrated illustrated exemplified embodied personified typified represented symbolized signified denoted indicated suggested implied hinted intimated alluded inferred deduced concluded assumed supposed presumed conjectured surmised speculated guessed theorized hypothesized postulated posited advanced proposed propounded formulated devised designed created invented developed originated conceived initiated inaugurated launched commenced started began embarked ventured dared braved risked hazarded chanced gambled wagered bet staked played speculated ventured tried attempted essayed endeavored strived sought aimed aspired pursued followed chased hunted tracked trailed stalk ed shadow ed dog ged tailed spied eavesdropped overheard listened detected discern perceived sensed felt noticed observed saw viewed witnessed beheld gazed stared peered glanced glimpses peek glimpses peep sight glimpse glance peep spy notice observe perceive sense feel discern detect see view witness behold gaze stare peer glance glimpse peek peep spy notice observe perceive sense feel discern detect see view witness behold gaze stare peer glance glimpse peek peep spy notice observe perceive sense feel discern detect see view witness behold gaze stare peer glance glimpse peek peep spy notice observe perceive sense feel discern detect see view witness behold gaze stare peer glance glimpse peek peep spy notice observe perceive sense feel discern detect see view witness behold gaze stare peer glance glimpse peek peep spy notice observe perceive sense feel discern detect see view witness behold gaze stare peer glance glimpse peek peep spy

"Please send comments or suggestions on these subjects or other subjects related to debt management to debt.management@treasury.gov."

"The next quarterly refunding announcement will take place on Wednesday, February 5, 2025."

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