Treasury Sets $125 Billion Quarterly Refunding, Keeps Coupon and FRN Sizes Steady

The U.S. Treasury announced a $125 billion quarterly refunding for February-April 2026 that aims to raise $34.8 billion in new cash from private investors. It will hold coupon and floating rate note auction sizes steady for the near term, publish specific next-week auction sizes, and expects to reduce short-dated bill auctions around the April 15 tax date, which should cut net bill supply by $250-$300 billion by early May. The Treasury also estimated the General Account could reach roughly $1.025 trillion by late April.

Key Points

Quarterly refunding totals $125 billion for Feb-April 2026, aiming to raise $34.8 billion in new cash from private investors.
Next week’s auctions are set at $58 billion (3-year), $42 billion (10-year) and $25 billion (30-year); coupon, FRN and TIPS auction sizes will remain at current levels for now.
Treasury expects to reduce short-dated bill auction sizes by late March due to the April 15 tax date, likely lowering net bill supply by $250-$300 billion by early May; the General Account could reach about $1.025 trillion by late April.

Summary

The U.S. Treasury Department said on Wednesday it will carry out a total quarterly refunding of $125 billion covering the February through April 2026 period, with the stated objective of generating $34.8 billion in new cash from private investors. The department also announced it will maintain existing coupon and floating rate note auction sizes for at least the next several quarters.

Planned auctions and immediate execution

For auctions scheduled next week the Treasury specified the following sizes:

$58 billion in three-year notes
$42 billion in 10-year notes
$25 billion in 30-year bonds

The announcement reiterates that Treasury Inflation-Protected Securities auction sizes will remain at current levels. Benchmark bill offering sizes will be kept at or near current levels through mid-March.

Policy stance on issuance sizes

The department said it will continue to assess whether to increase coupon and floating rate note auction sizes in the future. Any decision to raise auction sizes will be informed by observed trends in structural demand and by consideration of potential costs or risks to issuance profiles.

Short-dated bills, supply trajectory and the tax calendar

The Treasury signaled that it expects to reduce short-dated bill auction sizes by late March in connection with the April 15 tax date. Those planned cuts are expected to result in a decline in net bill supply on the order of $250 billion to $300 billion by early May.

Cash balance outlook

In its statement the department estimated that the Treasury’s General Account could reach approximately $1.025 trillion by late April.

What the announcement leaves open

The Treasury’s notice affirms current operational plans while leaving room for adjustments to coupon and floating rate note issuance as demand patterns and issuance costs or risks evolve. Beyond the figures and near-term calendar adjustments provided, the statement does not specify the conditions or timing that would trigger changes to auction sizes.

Note: The department’s disclosure outlines auction sizes, timing expectations around the tax date, and an estimate for the General Account balance but does not provide further contingency thresholds for future issuance changes.

Risks

Future increases to coupon and floating rate note auction sizes could introduce costs or other risks to issuance profiles; the Treasury will evaluate structural demand and potential costs or risks when considering changes.
Reductions in short-dated bill auctions around the April 15 tax date create uncertainty in short-term bill supply, with the Treasury projecting a $250-$300 billion decline in net bill supply by early May.
The projected growth of the Treasury’s General Account to roughly $1.025 trillion by late April represents a large cash balance that the department will need to manage; the estimate introduces uncertainty about near-term liquidity positions.

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Key Points

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