U.S. Plans Record Debt Sale; No Big Changes Before New Stimulus

The U.S. Treasury held steady its planned issuance of longer-dated securities at a quarterly debt auction next week as the department awaits the result of the Biden administration’s push for a fresh coronavirus relief package.

The Treasury already boosted its so-called quarterly refundings in each of the last three quarters, and its stockpile of cash remains near an all-time high. With the outcome of President Joe Biden’s push for a $1.9 trillion stimulus bill uncertain, the department held off on tweaking its issuance of longer-dated securities.

Officials followed through on plans detailed in November to lift auctions of inflation-linked securities this year. The Treasury also said it will reduce bill issuance, which surged as it rushed to fund pandemic-related spending. The aim now is to bring the share of bills in the nation’s debt back toward historic norms.

The Treasury will sell $126 billion in long-term debt next week, broken down as follows:

  • $58 billion of three-year notes on Feb. 9, unchanged from January but $4 billion more than November
  • $41 billion of 10-year notes on Feb. 10, the same as last quarter
  • $27 billion of 30-year bonds on Feb. 11, unchanged versus November
  • The total amounts to $126 billion, or $4 billion more than the November refunding -- a new record, thanks to moves the past two months boosting three-year note auctions
    • The refunding will raise $63.1 billion in new cash