US Treasury Set To Sell USD 126Bln in Q3 Refunding

The U.S. Treasury said Wednesday it will again issue a record USD126 billion of securities at next week's quarterly refunding, the same as the last two quarters, raising USD67.4 billion in new cash.

• Officials say they plan to sell USD58 billion in 3-year notes on August 10,
• USD41 billion in 10-year notes on August 11,
• and USD27 billion in 30-year bonds on August 12.
• Officials however did announce TIPS auction sizes will again be increased by USD1 billion in the August 30-year reopening compared to last year, the September 10-year reopening compared to May, and in the October 5-year new issue compared to April. "While flexibility will be maintained to adjust TIPS issuance at each refunding quarter, we expect total gross issuance of TIPS to increase by $15 billion to $20 billion in CY 2021," Treasury said.
• The U.S. Treasury said Wednesday in its regular refunding announcement it anticipates gradual reductions in bills as a percent of Treasury debt outstanding and leaving longer-dated issuances steady in the next quarter, while signaling cutting coupon auctions as soon as November.