WASHINGTON / RankWire.AI / – U.S. Treasury Department plans to auction a total of $119 billion in notes and bonds over three consecutive days starting next week. The process begins on Tuesday, Oct. 6, with a sale of $58 billion in three-year notes. The following day, Treasury will auction $39 billion of 10-year notes, and on Thursday, $22 billion of 30-year bonds will be offered. These auctions are part of the government’s routine financing schedule, aligning with the amounts outlined in Treasury’s latest quarterly refunding plan for October.
The new three-year security is set to mature on Oct. 15, 2029. The 10-year note will reopen a previously issued bond with a 4.625% coupon, maturing on Aug. 15, 2036. Meanwhile, the 30-year bond will reopen an existing security with a 5.125% coupon, due on Aug. 15, 2056. Reopening securities adds to the available supply in the market, keeping the original coupon rate and maturity date intact, while establishing a new issue date for the additional securities.
All three securities are scheduled to settle on Oct. 15, as per the U.S. Treasury Department’s auction calendar. These sales are conducted on a yield basis, with results released after each auction concludes. Competitive bidders specify the yield they are willing to accept, whereas noncompetitive bidders agree to accept the yield determined at auction. Treasury notes and bonds pay fixed interest at regular intervals and constitute a significant portion of the U.S. government’s marketable debt portfolio.
Three-day auction schedule established by Treasury
The October reopenings for the 10-year and 30-year securities follow similar sales in September. On September 9, Treasury sold $39 billion of the 10-year note at a high yield of 4.834%. Investors bid approximately $105.8 billion, resulting in a bid-to-cover ratio of 2.71. This note has a 4.625% coupon and matures in August 2036. The upcoming October auction will introduce an additional $39 billion of the same security into the market.
Similarly, on September 10, Treasury sold $22 billion of the 30-year bond at a high yield of 5.308%. The auction drew bids totaling around $57.5 billion, producing a bid-to-cover ratio of 2.61. The bond offers a 5.125% coupon with maturity in August 2056. The October auction will reopen this security with another $22 billion offering. Treasury will release details on the accepted yield, price, and bidding outcomes after Thursday’s sale.
October auctions align with overall borrowing plans
The auctions in October take place amid a quarter in which Treasury anticipates substantial marketable borrowing. In August, the department projected a total of $628 billion in net marketable borrowing for the period from October through December, assuming an $850 billion cash reserve by the end of December. The federal government funds its operations through repeated sales of bills, notes, bonds, and other marketable securities. The sizes of these auctions fluctuate based on maturity and the government’s published financing schedule.
The total of $119 billion maintains the auction sizes for the October three-year, 10-year, and 30-year securities as outlined in Treasury’s August financing plan. This plan specified $58 billion for three-year notes, $39 billion for 10-year notes, and $22 billion for 30-year bonds. Treasury will publish official auction results on each scheduled sale date, including the high yield, accepted bids, allotments, and pricing details for the securities auctioned next week.