US to increase Treasury auction sizes as debt swells

<ul><li>Quarterly refunding of $103B to raise $19B of cash and refund $84 billion in maturing securities</li><li>Intends to gradually increase coupon sizes in Q3</li><li>2-year and 5-year note auctions to increase by $3B per month </li><li>10s to increase by $3B</li><li>2-year floaters to increase by $2B</li><li>20-year auctions to rise by $1B</li><li>30-year auctions to rise by $2B</li></ul><p>This underscores why Fitch <a href="https://www.forexlive.com/news/fitch-downgrades-usa-long-term-credit-rating-to-aa-from-aaa-20230801/" target="_blank" rel="follow">downgraded </a>the US late yesterday. The auction sizes are larger than the market was anticipating and US yields are now at the highs of the day across the curve.</p>

This article was written by Adam Button at www.forexlive.com.