U.S. Treasury to Maintain Steady Coupon Offering Sizes in Third Quarter, Reports Reuters

The U.S. Treasury announced on Wednesday that it will maintain steady coupon auction sizes for the upcoming July to September period, marking the second consecutive quarter of stable issuance.

Additionally, the Treasury plans to conduct a small-value test auction using its contingency auction system on August 17, with further details set to be revealed on August 15. According to a Treasury official, this test auction, along with mock auctions, is a precautionary measure to prepare for potential technical issues or cybersecurity incidents. It is anticipated that the auction will be in the vicinity of $25 million.

Regarding future coupon sizes, Deputy Assistant Secretary for Federal Finance James Clark stated that the department intends to adjust seasonal borrowing needs in the next quarter by modifying regular bill auction sizes and/or cash management bills.

In its quarterly refunding announcement, the Treasury indicated plans to auction $62 billion in coupon debt next week. Furthermore, on Monday, the Treasury projected issuing $201 billion through credit markets during the July to September quarter, an increase of $47 billion from its previous estimate in May.