TD Securities rate strategists Gennadiy Goldberg and Molly Brooks say the US
Treasury is expected to leave coupon Treasury auction sizes unchanged in next
week’s quarterly refunding announcement but may drop prior guidance that sizes
will remain steady. They warn removing the guidance would not mean an immediate
change in auctions but would alert markets that adjustments are imminent. TD
Securities expects the Treasury to cut 20‑ and 30‑year auction sizes in the Feb
2027 quarterly refunding and to expand 2‑ to 10‑year auction sizes in the May
2027 refunding to gradually reduce long-term issuance as the term premium rises.
