US Treasury to increase sizes of 2-, 3- and 5-year note auctions by $2 billion over next 3 months

The US Treasury Department announced on Wednesday that it anticipates increasing the sizes of the 2-, 3- and 5-year auctions by $2 billion per month over the next three months.

Additional notes

“Treasury to sell $48 billion 3-year notes, $38 billion 10-year notes, $26 billion 30-year bonds next week.”

“As a result of COVID-19 epidemic, Treasury has substantially increased both bill issuance and coupon auction sizes, raising an unprecedented $1.462 trillion on the net ($1.052 trillion in bills) since May 1.”

“Treasury anticipates increasing the size of the 7-year note auction by $3 billion per month over the next three months.”

“Treasury announces increases of $6 billion to both the new and reopened 10-year note auction sizes, and increases of $4 billion to both the new and reopened 30-year bond auction sizes starting in August.”

“Treasury also announces increases of $5 billion to both the new and reopened 20-year bond auction sizes starting in August.”

Market reaction

The yield on the 10-year US Treasury bond edged higher on this announcement and was last seen gaining 6.7% on a daily basis at 0.542%.