US 30 year yields
- Quarterly refunding of $103B to raise $19B of cash and refund $84 billion in maturing securities
- Intends to gradually increase coupon sizes in Q3
- 2-year and 5-year note auctions to increase by $3B per month
- 10s to increase by $3B
- 2-year floaters to increase by $2B
- 20-year auctions to rise by $1B
- 30-year auctions to rise by $2B
This underscores why Fitch downgraded the US late yesterday. The auction sizes are larger than the market was anticipating and US yields are now at the highs of the day across the curve.
