Financial Markets Assistant Secretary Josh Frost Quarterly Reimbursement Statement

WASHINGTON — The U.S. Treasury Department is offering $98 billion of Treasury securities to repay approximately $54.1 billion of privately owned Treasury bonds and notes maturing on August 15, 2022. This issuance will raise new cash from investors private assets of approximately $43.9 billion. The values ​​are:

A 3-year note in the amount of $42 billion, due August 15, 2025; A 10-year note in the amount of $35 billion, due August 15, 2032; and a 30-year bond for $21 billion due August 15, 2052.

The 3-year note will be performance auctioned at 1:00 PM ET on Tuesday, August 9, 2022. The 10-year note will be performance auctioned at 1:00 PM ET on Wednesday, August 10. 2022. The 30-year note will be auctioned based on yield at 1:00 PM ET on Thursday, August 11, 2022. All such auctions will close on Monday, August 15, 2022.

The balance of the Treasury’s funding requirements during the quarter will be met through weekly auctions of bills, cash management bills (CMBs) and auctions of monthly bills, bonds, inflation-protected securities (TIPS) and interest rate bond auctions variable (FRN) to 2 years. .

PROJECTED FINANCING NEEDS AND ISSUANCE PLANS

Since the May repayment, the Treasury has continued to receive information on projected borrowing needs, including an additional quarter of fiscal receipts and clarity on the timing and pace of repayment of Treasury securities from the system’s open market account Federal Reserve Based on this updated information, Treasury intends to continue reducing the size of nominal coupon securities auctions during the next quarter from August to October 2022. Treasury believes that these reductions announced today leave Treasury well-positioned to address possible changes to the fiscal outlook. Based on the future evolution of expected borrowing needs, the Treasury will consider whether adjustments in the coming quarters may be appropriate.

The Treasury plans to address any seasonal or unexpected variations in borrowing needs over the next quarter through changes in the size of regular bill and/or CMB auctions.

NOMINAL COUPON AND FRN FINANCING

Over the next three months, the Treasury plans to gradually reduce the size of each of the 2-, 3-, 5-, and 7-year note auctions by $1 billion per month. As a result, the size of the 2-, 3-, 5-, and 7-year note auctions will each decrease by $3 billion at the end of October.

The Treasury expects a $1 billion decrease in both new and reopened 10-year bond auction sizes and new and reopened 30-year bond auction sizes starting in August.

The Treasury also anticipates $2 billion in decreases in both 20-year bond auction sizes and new and reopened ones starting in August. Comments from market participants over the past quarter have indicated that a slightly larger reduction in 20-year bond auction sizes relative to surrounding maturities would improve the structural balance of supply and demand in the term, but also noted that it was important to ensure the size of benchmark liquidity and that any adjustments should be made in the context of the Treasury’s regular and predictable issuance framework.

In addition, the Treasury plans to maintain the August and September 2-year FRN auction sizes and to maintain the 2-year FRN auction size of the October new issue.

The following table presents the expected auction sizes in billions of dollars for the quarter August to October 2022:

2 years

3-years

5 years

7 years

10 years

20 years

30 years

FRN

May-22

47

45

48

42

36

17

22

22

Jun-22

46

44

47

40

33

14

19

22

Jul-22

45

43

46

38

33

14

19

24

August 22

44

42

45

37

35

15

21

22

Sep-22

43

41

44

36

32

12

18

22

Oct-22

42

40

43

35

32

12

18

24

Changes in the size of nominal coupon auctions announced today will result in a $51 billion reduction in issuance to private investors in the August-October 2022 quarter compared to the May-July quarter of 2022.

FINANCING ADVICE

During the next repayment quarter, the Treasury intends to maintain the size of the August 30 TIPS reopening auction at $8 billion, increase the size of the September TIPS reopening auction to $15 billion (an increase of $1 billion from the size of the May reopening auction) and increasing the size of the October 5-year new TIPS issue auction to $21 billion (an increase of $1 billion dollars relative to the auction size of the April new issue). Given Treasury’s desire to stabilize the share of TIPS as a percentage of total marketable debt outstanding and continued robust demand, Treasury will continue to monitor TIPS market conditions and consider whether further modest increases would be appropriate.

ISSUE OF INVOICES AND REFERENCE OF INVOICES FOR 4 MONTHS

Based on current forecasts, the Treasury anticipates that the supply of outstanding tickets in mid-July will represent the lowest point of the calendar year. Since that low, the Treasury has increased outstanding bills by $77 billion and expects the supply to increase further by nearly $100 billion over the remainder of the current calendar quarter. As always, the Treasury will continue to assess the fiscal outlook and assess the need to adjust the size of note auctions as the outlook evolves.

As announced in the May quarterly repayment, the Treasury plans to transition the 4-month (i.e. 17-week) CMB to the benchmark status. During this transition, the Treasury will continue to issue the 4-month CMB on a regular weekly basis. The Treasury anticipates that the first auction of 4-month benchmark bills will be announced on October 18, 2022, and will be auctioned on October 19, 2022. As noted above, the Treasury intends to maintain the Tuesday settlement and maturity cycle for the benchmark 4-month note.

CHANGES TO THE TREASURY AUCTION REGULATIONS

On July 7, 2022, the Treasury issued a final rule which makes several technical amendments aimed at modernizing the auction regulations, improving their clarity and improving consistency in the use of terminology. The amendments take effect on August 8, 2022. Accordingly, the non-competitive bidding and award limits for all auctions of marketable Treasury securities will increase from the current limit of $5 million to $10 million starting of the closing of the auctions on Monday, August 8, 2022. .

ADDITIONAL PUBLIC TRANSPARENCY

In June, Treasury, in consultation with the Interagency Working Group on Treasury Market Surveillance, took an important step in its work to strengthen Treasury market resilience by issuing a ask for information solicit public comment on additional transparency of post-trade data in secondary market transactions of Treasury securities. Treasury encourages market participants to provide feedback during the 60-day public comment period, which will remain open until August 26, 2022.

In addition, the Treasury supports the recent regulatory authorities of the financial industry proposed rule change to publish US Treasury Security aggregate transaction information and statistics more frequently, such as moving from weekly to daily publication.

Send comments or suggestions on these or other debt management topics to debt.management@treasury.gov.

The next quarterly repayment announcement will be made on Wednesday 2 November 2022.

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