Treasury Drops "At Least" From Coupon Guidance, Opening The Door To Long-End Auction Changes In 2027 Two words. That is all it took. Well, the Treasury may not have gone as far as announcing a cut to 20Y and 30Y auction sizes (as Citi predicted a few weeks ago ), but moments ago the department revamped the guidance on sales of notes and bonds it has used since early 2024 , in a move that may open the door to cuts in issuance of the longest-dated debt in 2027.
"Based on current projected borrowing needs, Treasury anticipates maintaining nominal coupon and FRN auction sizes for the next several quarters ." The new language contrasts with the wording Bessent used for more than two years, which said auction sizes for coupons and floating-rate notes would be kept unchanged " for at least the next several quarters." In other words, the floor under current auction sizes is gone... and from here on every refunding is live.