Treasury keeps auction sizes steady, considering future increases

Nov 5 (Reuters) - The U.S. Treasury Department on Wednesday said it expects to keep its nominal coupon and floating rate note auction sizes steady for at least the next several quarters, but is beginning to consider future increases.

The U.S. plans to sell $125 billion in its quarterly refunding next week, which will raise $26.8 billion in new cash and refund $98.2 billion in securities. This will include $58 billion in three-year notes, $42 billion in 10-year notes and $25 billion in 30-year bonds.

The Treasury said it has begun to preliminarily consider future increases to its nominal and floating rate note auctions sizes and is evaluating trends in structural demand and assessing the potential costs and risks of various issuance profiles.

The Treasury will vary the size of its bill issuance over the coming quarter based on its needs. It expects to make modest reductions to short-dated bill auctions sizes in December, based on corporate and non-withheld tax receipts. It then expects to increase them again by the middle of January 2026, based on expected fiscal outflows.

It added that it will increase the size of its 5-year Treasury Inflation-Protected Securities (TIPS) reopening in December by $1 billion to $24 billion, while leaving the size of other TIPS auctions unchanged.