The Treasury is out with its quarterly refunding announcement, the document that outlines how it will borrow in the coming quarter. The key line in the release is that it expects to keep coupon auction sizes steady "for at least the next several quarters".
That line is the early warning on ramping up Treasury auctions and at some point it will have to shift as the US continues to run deficits at 6% of GDP. But that hasn't shifted yet aside from a bump in TIPS that was announced today.
Details:
- 3s $58 billion
- 10s $42 billion
- 30s $25 billion
- TIPS reopening rises to $24 billion for December
Treasury yields are at the highs of the day with 10s up 1.9 bps to 4.11%. That level has acted as a ceiling since early October.
