US Treasury Likely to Hold Coupon Auction Sizes Steady
The Treasury will likely keep bond auction sizes unchanged while using short-term bills to manage a projected 1.98 trillion dollar deficit and tariff refunds.
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The United States Treasury will likely maintain bond-auction sizes for a ninth consecutive quarter during its refunding announcements on May 4 and May 6. This steady issuance follows a Supreme Court ruling requiring $166B in tariff refunds, which may force a shift toward longer-term debt. Investors face potential yield curve steepening if the government moves from short-term bills to larger coupon auctions later this year.
