Goldman Sachs: U.S. Treasury Expected to Lean Towards Increasing Short-Term Treasury Bill Auction Size

BlockBeats News, November 6th, Goldman Sachs' William Marshall and Bill Zu stated that the future increase in the US Treasury's bond auction size may tend towards shorter-term bonds. They expect that the auction size of nominal 2-year, 3-year, 5-year, and 7-year bonds will continue to increase, while the increase for floating rate notes will be smaller, and the auction size of 10-year, 20-year, and 30-year bonds will remain stable. They expect this trend to begin in November 2026.

They stated: "Over time, we expect this to lower the weighted average maturity (WAM) and see a steady increase in the share of short-term bonds." However, given the Fed's expectation to purchase about 50% of net short-term bond supply over the next two years, the share of short-term bonds held by the private sector may remain relatively stable. (FX678)