Quarterly Refunding Statement of Assistant Secretary for Financial Markets Josh Frost

On November 1, 2023, the US Department of the Treasury (USDT) announced its projected financing needs and the tentative issuance schedule for U.S. government securities between November 2023 and January 2024, inclusive. The following table depicts the intended issuance sizes and maturities in that time period.
Graphic 1 – Tentative Government Securities Issuance Schedule

The USDT thereby also provides some further information for investors as regards its plans to further increase issuance sizes. Specifically, over the next three months, the Treasury Department plans to continue to gradually raise the sizes of its notes and bond auctions across all maturities. The increase in auction sizes will thereby be different for different notes and bond tenors. For instance, the auction sizes for 2-year and 5-year notes will each rise by $3 billion per month, while the 3-year note auction size will go up by $2 billion per month, and the 7-year note auction size will increase by $1 billion per month. By the end of October 2023, this will result in a cumulative increase of $9 billion, $6 billion, $9 billion, and $3 billion for the 2-year, 3-year, 5-year, and 7-year notes, respectively.
Similarly, the Treasury Department plans to increase both the auction size for newly issued bonds and the auction size for reopening (reissuing) bonds with maturities of 10 years or beyond. Finally, the USDT plans to increase the auction sizes for certain Floating Rate Notes (FRNs) as well. Specifically, the auction size for the 2-year FRN will increase by $2 billion for both the November and December reopening auctions, and the January new issue auction size will also rise by $2 billion.