The US Treasury has adjusted the medium- to long-term treasury bond issuance guidelines that have been in use since the beginning of 2024. Traders said that this move opens the door to expanding the scale of issuing short-term treasury bonds and possibly reducing the scale of long-term treasury bond tenders. The US Treasury Department said in a statement on Wednesday that according to current projected financing needs, it is expected that the scale of medium- and long-term treasury tenders “in the next few quarters” will remain unchanged. The point is that the Ministry of Finance removed the word “at least”, which was previously placed before this period. The new wording means that the scale of tendering for short-term treasury bonds may increase, while the scale of issuing long-term treasury bonds may be reduced. Traders have been discussing this issue for several months as long-term yields rose to their highest level in more than 20 years.

The US Treasury has adjusted the medium- to long-term treasury bond issuance guidelines that have been in use since the beginning of 2024. Traders said that this move opens the door to expanding the scale of issuing short-term treasury bonds and possibly reducing the scale of long-term treasury bond tenders. The US Treasury Department said in a statement on Wednesday that according to current projected financing needs, it is expected that the scale of medium- and long-term treasury tenders “in the next few quarters” will remain unchanged. The point is that the Ministry of Finance removed the word “at least”, which was previously placed before this period. The new wording means that the scale of tendering for short-term treasury bonds may increase, while the scale of issuing long-term treasury bonds may be reduced. Traders have been discussing this issue for several months as long-term yields rose to their highest level in more than 20 years.