Bond yields held overnight declines Wednesday, after the Treasury said it didn’t expect to increase the size of its note and bond auctions “for at least the next several quarters.”
Investors had expected the Treasury, in its quarterly refunding announcement, to keep those auctions unchanged. But many had thought officials might open the door to boosting the size of them later in the year, given Washington’s projected borrowing needs.
In a separate report, the private-sector Treasury Borrowing Advisory Committee said its members “uniformly encouraged the Treasury to consider removing or modifying” issuance guidance related to the next few quarters.
Newly confirmed Treasury Secretary Scott Bessent has argued the previous administration borrowed too much in Treasury bills, which mature in a year or less. That has raised questions about whether he would aim to issue more notes and bonds, which carry maturities of two to 30 years.
The yield on the benchmark 10-year U.S. Treasury note was 4.456% in recent trading, according to Tradeweb, down from 4.511% Tuesday.
The Treasury isn’t keeping all auction sizes unchanged. It announced small increases to auctions of 5-and-10-year Treasury-inflation-protected securities, or TIPS.