U.S. Treasury Consults Dealers on Auction Sizes and Buyback Strategies Ahead of Quarterly Refunding
The U.S. Treasury Department is preparing to release its quarterly refunding statement on November 4, following a consultation process with primary dealers regarding debt issuance strategies. The department sought feedback on potential changes to auction sizes, the effectiveness of increased buybacks in longer-dated bond sectors, and whether to avoid certain auctions during Federal Open Market Committee policy announcements. This upcoming announcement follows previous decisions to double liquidity support buyback operations for 10-year to 30-year bonds. As the Treasury evaluates its borrowing needs—previously estimated at $628 billion in net marketable borrowing for the October-December quarter—the market is also monitoring shifts in market structure, including upcoming SEC central clearing deadlines for Treasury transactions.