Quarterly Refunding Statement of Deputy Assistant Secretary for Federal Finance Brian Smith
WASHINGTON — The U.S. Department of the Treasury is offering $125 billion of Treasury securities to refund approximately $96.3 billion of privately-held Treasury notes and bonds maturing on August 15, 2026. This issuance will raise new cash from private investors of approximately $28.7 billion. The securities are:
The 3-year note will be auctioned at 1:00 p.m. EDT on Tuesday, August 11, 2026. The 10-year note will be auctioned at 1:00 p.m. EDT on Wednesday, August 12, 2026. The 30-year bond will be auctioned at 1:00 p.m. EDT on Thursday, August 13, 2026. All these auctions will take place on a yield basis and will settle on Monday, August 17, 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.
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 changes 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 May to July 2026 quarter and the anticipated auction sizes for the August to October 2026 quarter:
2-Year
3-Year
5-Year
7-Year
10-Year
20-Year
30-Year
FRN
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
Aug-26
69
58
70
44
42
16
25
28
Sep-26
69
58
70
44
39
13
22
28
Oct-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.
Over the August to October 2026 quarter, Treasury plans to maintain TIPS auction sizes at current levels: the August 30-year TIPS reopening auction size at $8 billion, the September 10-year TIPS reopening auction size at $19 billion, and the October 5-year TIPS new issue auction size at $26 billion.
Based on current forecasts, Treasury expects to maintain current auction sizes in benchmark bills in the coming weeks and anticipates potentially issuing a short-dated CMB to meet its cash management needs around the end of August. Given projections for receipts associated with the mid-September corporate and non-withheld tax date, Treasury expects to implement reductions to shorter-dated bill auction sizes during the month of September. In October, Treasury anticipates increasing auction sizes across the bill curve based on expected seasonal fiscal outflows. As always, Treasury will continue to evaluate near-term borrowing needs and assess additional adjustments to bill auction sizes as appropriate.
Treasury is assuming a $950 billion cash balance at the end of September. However, based on current projections for the upcoming refunding quarter, Treasury estimates that the size of the Treasury General Account (TGA) could peak at $1.05 trillion (plus or minus $50 billion) in late October. 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.
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.
Please send comments or suggestions on these subjects or other subjects related to debt management to debt.management@treasury.gov.
The next quarterly refunding announcement will take place on Wednesday, November 4, 2026.