Treasury Drops "At Least" From Coupon Guidance, Opening The Door To Long-End Auction Changes In 2027

The U.S. Treasury removed the phrase “at least” from its guidance on coupon and floating-rate note auction sizes, potentially giving it room to cut the largest maturities in 2027. In guidance effective for upcoming refunding auctions, Treasury said it expects to maintain current nominal coupon and FRN auction sizes “for the next several quarters,” replacing wording that had preserved sizes “for at least the next several quarters.” The next week’s auctions total $125 billion, unchanged for the 11th straight time, including $58 billion in 3-year notes (Nov. 9), $42 billion in 10-year notes (Nov. 10), and $25 billion in 30-year bonds (Nov. 12).