The U.S. Department of the Treasury is offering $125 billion of Treasury securities to refund approximately $83.3 billion of privately-held Treasury notes maturing on May 15, 2026. This issuance will raise new cash from private investors of approximately $41.7 billion. The securities are:
- A 3-year note in the amount of $58 billion, maturing May 15, 2029;
- A 10-year note in the amount of $42 billion, maturing May 15, 2036; and
- A 30-year bond in the amount of $25 billion, maturing May 15, 2056.
The 3-year note will be auctioned at 1:00 p.m. EDT on Monday, May 11, 2026. The 10-year note will be auctioned at 1:00 p.m. EDT on Tuesday, May 12, 2026. The 30-year bond will be auctioned at 1:00 p.m. EDT on Wednesday, May 13, 2026. All these auctions will take place on a yield basis and will settle on Friday, May 15, 2026.
The balance of Treasury financing requirements over the quarter will be met with regular weekly bill auctions, cash management bills (CMBs), and monthly note, bond, Treasury Inflation-Protected Securities (TIPS), and 2-year Floating Rate Note (FRN) auctions.
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 profiles.
The table below presents, in billions of dollars, the actual auction sizes for the February to April 2026 quarter and the anticipated auction sizes for the May to July 2026 quarter:
2-Year | 3-Year | 5-Year | 7-Year | 10-Year | 20-Year | 30-Year | FRN | |
|---|---|---|---|---|---|---|---|---|
Feb-26 | 69 | 58 | 70 | 44 | 42 | 16 | 25 | 28 |
Mar-26 | 69 | 58 | 70 | 44 | 39 | 13 | 22 | 28 |
Apr-26 | 69 | 58 | 70 | 44 | 39 | 13 | 22 | 30 |
May-26 | 69 | 58 | 70 | 44 | 42 | 16 | 25 | 28 |
Jun-26 | 69 | 58 | 70 | 44 | 39 | 13 | 22 | 28 |
Jul-26 | 69 | 58 | 70 | 44 | 39 | 13 | 22 | 30 |
Treasury plans to address any seasonal or unexpected variations in borrowing needs over the next quarter through changes in regular bill auction sizes and/or CMBs.
TIPS FINANCING
Over the May to July 2026 quarter, Treasury plans to maintain TIPS auction sizes at current levels: the May 10-year TIPS reopening auction size at $19 billion, the June 5-year TIPS reopening auction size at $24 billion, and the July 10-year TIPS new issue auction size at $21 billion.
BILL ISSUANCE
Based on current forecasts, Treasury expects to further increase offering sizes of shorter-dated benchmark bills over the coming weeks and, in late-May, anticipates issuing a short-dated CMB to meet the peak liquidity needs at the end of May due to maturing coupon securities. Given projections for receipts associated with the mid-month corporate and non-withheld tax date, Treasury expects to implement modest reductions to short-dated bill auction sizes during the month of June. Thereafter, in July, Treasury anticipates incrementally increasing bill auction sizes across the curve. As always, Treasury will continue to evaluate near-term borrowing needs and assess additional adjustments to bill auction sizes as appropriate.
CASH BALANCE
Treasury is assuming a $900 billion cash balance at the end of June. However, based on current projections for the upcoming refunding quarter, Treasury estimates that the size of the Treasury General Account (TGA) could peak at $1 trillion (plus or minus $50 billion) in late July. This figure is consistent with Treasury’s long-standing cash balance policy and is driven by the large outflows expected to occur at that time.
BUYBACKS
Today, Treasury is releasing a tentative buyback schedule for the upcoming refunding quarter. Treasury anticipates that, over the course of the upcoming quarter, it will purchase up to $38 billion in off-the-run securities across buckets for liquidity support and up to $25 billion in the 1-month to 2-year maturity bucket for cash management purposes.