Treasury opens the door to changing auction sizes next year
The $125bn refunding matched expectations, but the Treasury dropped the words ‘at least’ from its guidance, and analysts expect longer-dated auctions could shrink. The 10-year yield closed at 4.89%.
Source published · In the Daily Brief of 5 November 2026
The Treasury will sell $58bn of 3-year notes, $42bn of 10-year notes and $25bn of 30-year bonds next week, raising about $28bn of new cash. It now expects to hold coupon and floating-rate auction sizes for the next several quarters. Many analysts read that as two quarters, according to Reuters, which would allow changes in the first half of 2027.
Analysts expect larger sales in the 2-year to 7-year sector and see the 20-year and 30-year auctions as the most likely to be cut, though not all agree. The 10-year yield fell 5.8 basis points on Wednesday to 4.89%, after reaching levels last month not seen since 2002.