US Treasury keeps auction sizes unchanged, but dealer minutes reveal surprises

The U.S. Treasury will maintain current auction sizes for bonds and notes for several quarters, aligning with market expectations. However, Treasury Borrowing Advisory Committee minutes revealed dealer estimates of a significant $1.1 trillion shortfall for 2027-2028, sparking market attention. Investors anticipate auction size increases might occur sooner than previously thought, potentially late 2026 or early next year.