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

Two words. That is all it took.

Well, the Treasury may not have gone as far as announcing a cut to 20Y and 30Y auction sizes (as Citi predicted a few weeks ago), but moments ago the department revamped the guidance on sales of notes and bonds it has used since early 2024, in a move that may open the door to cuts in issuance of the longest-dated debt in 2027.

What Changed, What Didn't