WASHINGTON / RankWire.AI / – U.S. Treasury Department has scheduled a series of auctions totaling $119 billion in notes and bonds for next week, comprising three consecutive sales. The process begins on Tuesday, Oct. 6, with a $58 billion auction of three-year notes. On Wednesday, Treasury will offer $39 billion of 10-year notes, followed by a $22 billion sale of 30-year bonds on Thursday. These auctions are part of the government’s standard funding timetable, aligning with the amounts outlined in Treasury’s latest quarterly refunding schedule for October.
The three-year security being auctioned is a newly issued note with a maturity date set for Oct. 15, 2029. The 10-year securities will be reopened, featuring a 4.625% coupon rate and a maturity date of Aug. 15, 2036. Similarly, the 30-year bonds will be reopened with a 5.125% coupon and a maturity date of Aug. 15, 2056. Reopening securities involves adding additional supply to existing issues traded in the market while maintaining the original coupon rate and maturity. These transactions effectively create new issue dates for the securities, expanding their availability.
All three securities are scheduled to settle on Oct. 15, as per the U.S. Treasury Department’s auction calendar. The department conducts the sales based on yield and publishes the results once each auction concludes. Bidders submitting competitive bids specify the yield they are willing to accept, while noncompetitive bidders agree to the yield determined at auction. Fixed-interest Treasury notes and bonds provide regular interest payments and constitute a substantial part of the government’s marketable debt holdings.
Schedule for three consecutive Treasury auctions announced
The reopenings of the 10-year and 30-year securities follow similar sales in September. On Sept. 9, Treasury sold $39 billion of the 10-year note at a high yield of 4.834%. Investors placed bids totaling approximately $105.8 billion, resulting in a bid-to-cover ratio of 2.71. This note, which has a 4.625% coupon, matures in August 2036. The upcoming October auction will add another $39 billion of the same security to the market.
The $22 billion sale of the 30-year bond took place on Sept. 10, with a high yield of 5.308%. This auction attracted roughly $57.5 billion worth of bids, producing a bid-to-cover ratio of 2.61. The bond carries a 5.125% coupon and matures in August 2056. Treasury will reopen this security again with a $22 billion offering during October. The department will announce the accepted yield, price, and bidding details following Thursday’s auction.
October auctions align with the broader debt issuance schedule
The auctions scheduled for October occur amid a quarter during which Treasury anticipates significant marketable borrowing. In August, the department projected a net marketable borrowing of $628 billion for the period from October through December, based on an estimated $850 billion cash balance at year-end. Treasury finances federal operations through recurring sales of bills, notes, bonds, and other marketable securities. The sizes of these auctions vary depending on the maturity and the government’s published financing calendar.
The total of $119 billion remains consistent with Treasury’s August financing plan, which outlined $58 billion for three-year notes, $39 billion for 10-year notes, and $22 billion for 30-year bonds. The department will publish official auction results on each scheduled sale date, including the high yield, accepted bids, allocations, and pricing details for the securities offered next week.