WASHINGTON / RankWire.AI / – The U.S. Treasury Department will conduct a series of three debt sales next week, totaling $119 billion in notes and bonds. The series begins on Tuesday, Oct. 6, with an offering of $58 billion in three-year notes. On Wednesday, Treasury will hold a $39 billion auction for 10-year notes, followed by a $22 billion sale of 30-year bonds on Thursday. These auctions are part of the government’s regular debt issuance schedule. Their sizes align with the amounts outlined in Treasury’s latest quarterly refunding plan for October.
The three-year security being offered is a new note set to mature on Oct. 15, 2029. The 10-year note will be a reopening of a 4.625% security maturing on Aug. 15, 2036. Meanwhile, the 30-year bond is a reopening of a 5.125% issue due on Aug. 15, 2056. Reopenings serve to increase the supply of securities already traded in the market by maintaining the same coupon rate and maturity date, while establishing a new issue date for the additional securities.
All three securities are scheduled for settlement on Oct. 15, according to the Treasury Department’s auction calendar. Auctions are conducted on a yield basis, with results released after each sale concludes. Bidders submitting competitive offers specify the yield they are willing to accept, while noncompetitive bidders agree to accept the yield determined at auction. Treasury notes and bonds provide fixed interest payments at regular intervals and constitute a large portion of the government’s marketable debt.
Treasury schedules three-day auction sequence
Following auctions of the same securities in September, the October reopenings of the 10-year and 30-year bonds will take place. On Sept. 9, Treasury sold $39 billion of the 10-year note at a high yield of 4.834%. Investors submitted bids totaling approximately $105.8 billion, resulting in a bid-to-cover ratio of 2.71. This note, with a 4.625% coupon, matures in August 2036. The October auction will add another $39 billion of the same security into circulation.
On Sept. 10, Treasury sold $22 billion of the 30-year bond at a high yield of 5.308%, attracting bids worth around $57.5 billion and a bid-to-cover ratio of 2.61. This security, with a 5.125% coupon, matures in August 2056. The upcoming October auction will reopen this bond with an additional $22 billion. The Treasury will announce the accepted yield, price, and bidding details after Thursday’s sale.
October auctions align with the broader borrowing plan
These auctions take place amid a quarter in which Treasury anticipates substantial marketable borrowing. In August, the department projected $628 billion of net marketable borrowing for the October through December period. This estimate presumes an $850 billion cash balance by the end of December. Treasury funds federal operations through regular sales of bills, notes, bonds, and other securities. The sizes of these auctions differ based on maturity and the government’s published financing schedule.
The $119 billion total maintains the same auction sizes for the October three-year, 10-year, and 30-year securities as outlined in Treasury’s August financing plan: $58 billion for three-year notes, $39 billion for 10-year notes, and $22 billion for 30-year bonds. Official auction results will be released on each sale date, providing details such as the high yield, accepted bids, allocations, and pricing for next week’s offerings.