Better finances means US Treasury will reduce auction sizes

The United States plans to decrease the auction sizes of two- and three-year notes over the coming months because improving government finances have reduced the need for debt financing, the US Treasury said yesterday.

In addition, the extra cash coming into the Treasury’s coffers should help it continue paying for government operations, giving Congress time to raise the nation’s borrowing limit when it returns from a recess in early September, Treasury said.

The Treasury, in its quarterly refunding announcement, said the auction size next week will remain the same size, with plans to borrow $72bn (€54bn) in debt securities.