US Treasury Bond Sales Surge as Traders Brace for Record-Breaking $102 Billion Issuance

The U.S. Department of the Treasury plans to offer $103 billion of Treasury securities to refund maturing notes and bonds, raising approximately $19 billion in new cash. Auctions for a 3-year note, 10-year note, and 30-year bond will take place in August, settling on August 15. The Treasury intends to gradually increase coupon auction sizes over the next quarter to align with borrowing needs. They also plan to increase auction sizes for 2-year, 5-year, 7-year, 10-year, and 30-year securities. Additionally, the Treasury plans to increase TIPS auction sizes and implement a regular buyback program in 2024. A small-value test auction will be conducted to test contingency auction infrastructure.