The US Treasury indicated on the 5th that it expects to keep auction sizes for coupon and floating-rate notes unchanged for at least the next several quarters. The move aims to ease concerns that an early expansion of long-term debt auctions would add further upward pressure to already elevated yields. Next week, it will conduct a quarterly refunding totaling 125 billion dollars, consisting of 58 billion in 3-year notes, 42 billion in 10-year notes, and 25 billion in 30-year bonds. While short-term bill auction sizes will be held steady for the time being, the Treasury may issue cash management bills to meet funding needs around late August, and expects to reduce bill auctions in September in anticipation of tax receipts. It also projected that the Treasury General Account cash balance could peak at around 1.05 trillion dollars in late October.
