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Investing.com -- The U.S. Department of the Treasury announced it will offer $125 billion of Treasury securities to refund approximately $89.8 billion of privately-held Treasury notes and bonds maturing on August 15, 2025.
This issuance will raise new cash from private investors of approximately $35.2 billion through three offerings: a $58 billion 3-year note maturing August 15, 2028; a $42 billion 10-year note maturing August 15, 2035; and a $25 billion 30-year bond maturing August 15, 2055.
The auctions will take place on consecutive days starting Tuesday, August 5, 2025, with the 3-year note, followed by the 10-year note on Wednesday and the 30-year bond on Thursday. All auctions will occur at 1:00 p.m. ET and settle on Friday, August 15, 2025.
Treasury officials indicated they plan to maintain nominal coupon and Floating Rate Note (FRN) auction sizes for at least the next several quarters, based on current projected borrowing needs.
For Treasury Inflation-Protected Securities (TIPS), the department plans incremental increases during the August to October quarter. The August 30-year TIPS reopening will remain at $8 billion, while the September 10-year TIPS reopening will increase to $19 billion, and the October 5-year TIPS new issue will rise to $26 billion.
Since the $5 trillion debt limit increase on July 4, Treasury has been increasing bill issuance to finance government operations and rebuild its cash balance. The department expects the cash balance to approach levels consistent with its policy in September, with further marginal increases in short-dated Treasury bill auction sizes in the coming days.
Treasury also announced significant enhancements to its buyback program effective August 13, 2025. These changes include doubling the frequency of long-end nominal coupon liquidity support buybacks from two to four times per quarter for both the 10- to 20-year and 20- to 30-year buckets.
The department is adjusting TIPS buyback buckets by introducing 1- to 10-year and 10- to 30-year TIPS buyback buckets, replacing the existing 1- to 7.5-year and 7.5- to 30-year TIPS buckets.
Additionally, Treasury is increasing the aggregate size of cash management buybacks from a maximum par amount of $120 billion per year to $150 billion per year. The department does not plan to conduct cash management buybacks around the September tax date as it rebuilds its cash balance, but expects to resume these operations in December.
In the first half of 2026, Treasury plans to offer direct buyback access to additional counterparties based on their participation in Treasury auctions, with eligibility criteria to be published later this year.
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