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  • Here Comes the Tsunami of Longer-Term Treasury Notes & Bonds: Monthly Auction Sizes +60% by August Next Year

Here Comes the Tsunami of Longer-Term Treasury Notes & Bonds: Monthly Auction Sizes +60% by August Next Year

August 03, 2023

by Wolf Richter Wolf Street

Good Lordy.

The US Treasury Department today released data to what extent it will boost the issuance of Treasury notes (maturities of 2 years to 10 years) and Treasury bonds (20 years and 30 years), and it starts in August. This oncoming flood of supply at these coupon auctions is a doozie.

So far, Treasury has funded the huge gigantic deficits and the refilling of its checking account, the Treasury General Account, by selling at auction a torrent of Treasury bills (1 year or less) and Cash Management Bills (short-term bills with maturities ranging from a few days to months). But now comes the supply of longer-term notes and bonds.