The U.S. Department of the Treasury said on Wednesday it will offer a total of $125 billion in Treasury securities to refund approximately $83.3 billion of privately-held notes that mature on May 15, while raising about $41.7 billion in new cash from private investors.
Issuance breakdown and schedule
The auction package consists of three benchmark offerings: a 3-year note totaling $58 billion that will mature on May 15, 2029; a 10-year note of $42 billion maturing May 15, 2036; and a 30-year bond of $25 billion maturing May 15, 2056. The department said the 3-year auction is set for 1:00 p.m. EDT on Monday, May 11, the 10-year at 1:00 p.m. EDT on Tuesday, May 12, and the 30-year at 1:00 p.m. EDT on Wednesday, May 13. All three auctions are scheduled to settle on Friday, May 15.
Auction sizing and TIPS plans
Treasury officials indicated they will keep nominal coupon and Floating Rate Note auction sizes at current levels for at least the next several quarters, based on projected borrowing needs. The department is tracking System Open Market Account purchases of Treasury bills along with growing private sector demand as factors informing issuance strategy.
For the May-through-July quarter, Treasury said it will maintain Treasury Inflation-Protected Securities auction sizes at current levels. Specific planned TIPS actions include a May reopening of the 10-year TIPS at $19 billion, a June reopening of the 5-year TIPS at $24 billion, and a July new issue of the 10-year TIPS at $21 billion.
Short-dated bills, cash management and liquidity operations
The department expects to increase offering sizes of shorter-dated benchmark bills in the coming weeks and plans to issue a short-dated cash management bill in late May to address peak liquidity needs. Treasury anticipates modest reductions to short-dated bill auction sizes in June, followed by incremental increases across the curve in July.
Treasury said it is assuming a $900 billion cash balance at the end of June, and projected that the Treasury General Account could peak at about $1 trillion, plus or minus $50 billion, in late July. To support liquidity and cash management objectives over the upcoming quarter, the department plans to purchase up to $38 billion in off-the-run securities and up to $25 billion in securities within the 1-month to 2-year maturity bucket.
Operational changes to 20-year reopenings and reporting
Beginning with the auction scheduled for June 16, the department will have 20-year bond reopening auctions settle on the Friday of the auction week, while new 20-year issues will continue to settle at month end. Treasury said shortening the when-issued period should help mitigate repo specialness that often arises around reopening auctions.
Separately, Treasury plans to issue a Large Position Report call sometime over the next three months, following its last call on September 9, 2025, and will offer a free virtual workshop on June 26 to review LPR rules. The next quarterly refunding announcement is scheduled for Wednesday, August 5.
Note on scope
All figures, dates and operational details in this report reflect the department's announcement. No additional projections or assumptions beyond the Treasury's stated plans are included.