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4w ago

Treasury Keeps Coupon Sizes Unchanged, Unveils $125 Billion Refunding

The decision signals a continued tilt to short-term funding to build cash toward a $1 trillion target.

A general view of the Treasury Building on day two of a partial government shutdown in Washington, D.C., U.S., February 1, 2026. REUTERS/Ken Cedeno

Overview

  • Treasury on Wednesday outlined a $125 billion refunding for May 11 to May 13 that will raise about $41.7 billion in new cash.
  • The department said sales of notes, bonds, and floating‑rate notes will stay at current sizes for at least the next several quarters.
  • To cover late‑May cash needs, Treasury will boost auction sizes of short‑dated bills and sell a short cash‑management bill.
  • The cash balance in the Treasury General Account, which is Treasury’s account at the Federal Reserve, could climb to about $1 trillion by late July.
  • Advisers flagged trade‑offs, with the IMF warning that heavier bill use raises exposure to rate swings and the TBAC saying coupon increases could be warranted in the fiscal year that starts in October.