WASHINGTON / RankWire.AI / – The U.S. Treasury Department will auction $119 billion of notes and bonds next week across three consecutive sales. The schedule starts Tuesday, Oct. 6, with $58 billion of three-year notes. Treasury will follow with $39 billion of 10-year notes Wednesday and $22 billion of 30-year bonds Thursday. The auctions form part of the federal government’s regular financing calendar. Their sizes match the October amounts outlined in Treasury’s latest quarterly refunding schedule.
The three-year security is a new note scheduled to mature Oct. 15, 2029. The 10-year sale will reopen a 4.625% note that matures Aug. 15, 2036. The 30-year auction will reopen a 5.125% bond due Aug. 15, 2056. Reopenings add supply to securities that already trade in the market. They keep the original coupon rate and maturity date while creating a new issue date for the additional securities.
All three securities are scheduled to settle Oct. 15, according to the U.S. Treasury Department’s auction calendar. Treasury conducts the sales on a yield basis and releases results after each auction closes. Competitive bidders submit the yield they will accept. Noncompetitive bidders agree to accept the yield established through the auction. Treasury notes and bonds pay fixed interest at regular intervals and form a major part of the U.S. government’s marketable debt.
Treasury sets three-day auction sequence
The October 10-year and 30-year reopenings follow sales of the same securities in September. Treasury sold $39 billion of the 10-year note on Sept. 9 at a 4.834% high yield. Investors submitted about $105.8 billion of bids, producing a bid-to-cover ratio of 2.71. The note carries a 4.625% coupon and matures in August 2036. The October auction will add another $39 billion of the same security to the market.
Treasury sold $22 billion of the 30-year bond on Sept. 10 at a 5.308% high yield. That auction attracted about $57.5 billion of bids and produced a bid-to-cover ratio of 2.61. The bond carries a 5.125% coupon and matures in August 2056. The October sale will reopen that security again with another $22 billion offering. Treasury will announce the accepted yield, price and bidding details after Thursday’s auction.
October sales fit broader borrowing calendar
The October auctions come during a quarter in which Treasury projected significant marketable borrowing. In August, the department estimated $628 billion of privately held net marketable borrowing for the October through December quarter. That estimate assumed an $850 billion cash balance at the end of December. Treasury finances federal operations through recurring sales of bills, notes, bonds and other marketable securities. Auction sizes vary by maturity and by the government’s published financing calendar.
The $119 billion package keeps the October three-year, 10-year and 30-year auction sizes unchanged from Treasury’s August financing plan. That plan listed $58 billion for three-year notes, $39 billion for 10-year notes and $22 billion for 30-year bonds. Treasury will publish official auction results on each sale date. Those releases will include the high yield, accepted bids, allotments and pricing details for the securities sold under next week’s schedule.