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US Treasury May Cut Long-Dated Bond Sales
10 Oct
Summary
- US Treasury Secretary may reduce auction sizes for long-dated bonds.
- The Treasury could potentially cancel 20-year debt sales entirely.
- Citigroup forecasts a $3 billion reduction per auction for two types of bonds.
US Treasury Secretary Scott Bessent is poised to implement significant changes to the auction sizes of long-dated government debt. According to projections from Citigroup Inc., a reduction in auction sizes for both 20-year and 30-year bonds is likely.
Citigroup's base case scenario suggests a $3 billion reduction for each auction of these longer-term securities. Furthermore, the bank indicates a possibility that the Treasury might entirely cancel the sales of 20-year debt. These potential adjustments signal a notable shift in how the US government plans to manage its debt issuance in the near future.
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