Treasury sets August refunding at $125 billion

The U.S. Treasury said on August 5 it will sell $125 billion of securities in its August refunding, using the operation to refinance debt coming due on August 15 and to bring in additional cash. The package covers $96.3 billion of privately held Treasury notes and bonds maturing on August 15, 2026, and is expected to raise about $28.7 billion in new cash from private investors. (home.treasury.gov) Treasury said the sale will consist of a $58 billion three-year note, a $42 billion 10-year note and a $25 billion 30-year bond. ### What exactly is Treasury selling in this refunding? (home.treasury.gov) The August refunding includes three coupon-bearing securities: a three-year note maturing August 15, 2029, a 10-year note maturing August 15, 2036, and a 30-year bond maturing August 15, 2056, Treasury said. The sizes are $58 billion, $42 billion and $25 billion, respectively. The auction calendar is spread across three days. Treasury said the three-year note will be auctioned at 1 p.m. EDT on Tuesday, August 11; the 10-year note at 1 p.m. EDT on Wednesday, August 12; and the 30-year bond at 1 p.m. (home.treasury.gov) EDT on Thursday, August 13. ### Why does the statement say both “refund” and “raise new cash”? The $96.3 billion figure refers to maturing Treasury notes and bonds that the government is rolling over. In Treasury’s language, that is the “refunding” portion of the operation. The additional $28.7 billion is the amount Treasury said it expects to raise beyond the rollover, which increases cash from private investors. (home.treasury.gov) The combined total of those two pieces equals the $125 billion headline size. Treasury uses quarterly refundings to handle large scheduled maturities in longer-dated debt while also adjusting financing to meet current borrowing needs. (home.treasury.gov) ### Are auction sizes changing? Treasury kept the August refunding sizes unchanged from the prior quarterly refunding. In May, Treasury also sold $125 billion in a package made up of a $58 billion three-year note, a $42 billion 10-year note and a $25 billion 30-year bond. (home.treasury.gov) Treasury’s most recent quarterly refunding documents say the next formal refunding release is scheduled for November 4, 2026. The department’s quarterly refunding page also lists financing estimates released on August 3 and policy materials released on August 5. (home.treasury.gov) ### What did Treasury’s advisory committee say about market conditions? The Treasury Borrowing Advisory Committee told Treasury on August 4 that the Iran conflict and its effect on energy prices had been the dominant influence on global markets since early May. (home.treasury.gov) The committee said Brent crude had peaked near $126 in the spring, eased into the low $70s after a ceasefire and de-escalation, and then moved higher again in July. The committee’s minutes show Treasury had asked members what changes, if any, they recommended to issuance given short-, intermediate- and long-term financing requirements and quarter-to-quarter variability in borrowing needs. (home.treasury.gov) Treasury published those minutes on August 5. ### Who is making the announcement and what comes next? Brian Smith, the deputy assistant secretary for federal finance, issued the quarterly refunding statement on August 5. Treasury’s release said the department will announce the results of each auction after bidding closes on August 11, 12 and 13. (home.treasury.gov) November 2 is the next scheduled release date for Treasury’s quarterly financing estimates, and November 4 is the next scheduled refunding document release, according to Treasury’s quarterly refunding page. (home.treasury.gov 1) (home.treasury.gov 2) (home.treasury.gov 3)