US Quarterly Refunding Announcement (QRA): US sets quarterly refunding at USD 125bln, as expected; to sell USD 58bln in 3-year notes, USD 42bln in 10-year notes, and USD 25bln in 30-year bonds next week

Offering USD 125bln of Treasury securities and to refund c. USD 90.2bln of privately-held Treasury notes; will raise new cash from private investors of c. USD 34.8bln.

SUMMARY

US Treasury to keep coupon and floating rate note auction sizes unchanged for 'next several quarters'.
Future auction increases will consider trends on structural demand, potential costs/risks to issuance profiles.
To keep tips auction sizes at current levels.
To maintain offering sizes of benchmark bills at or near current levels by mid-march.
Expects to trim short-dated bill auction sizes by late March due to April 15th tax date.
TGA account could peak around USD 1.025tln by late April.
Cuts in Bill auction sizes will likely lead to decline in net bill supply by USD 250-300bln by early May.

Nominal coupon and FRN financing

Treasury believes its current auction sizes leave it well positioned to address potential changes to the fiscal outlook and to the size and composition of the SOMA portfolio.
Based on current projected borrowing needs, Treasury anticipates maintaining nominal coupon and FRN auction sizes for at least the next several quarters.
Treasury is monitoring SOMA purchases of Treasury bills and growing demand for Treasury bills from the private sector.
Looking ahead, Treasury continues to evaluate potential future increases to nominal coupon and FRN auction sizes, with a focus on trends in structural demand and potential costs and risks of various issuance profile

TIPS

Plans to maintain TIPS auction sizes at current levels: 30-year TIPS new issue auction size at USD 9bln, 10-year TIPS reopening auction size at USD 19bln, and TIPS new issue auction size at USD 26bln.

Bills

Treasury expects to maintain the offering sizes of benchmark bills at or near current levels into mid-March.
By late March, Treasury anticipates incrementally reducing short-dated bill auction sizes in light of the April 15th tax date; reductions will likely lead to a USD 250-300bln net decline in total bill supply by early May.
Treasury will continue to evaluate near-term borrowing needs and assess additional adjustments to bill auction sizes as appropriate.

Buybacks:

Treasury anticipates that, over the course of the upcoming quarter, it will purchase up to USD 38bln in off-the-run securities across buckets for liquidity support and up to USD 75bln in the 1-month to 2-year bucket for cash management purposes.

Auction Dates:

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