Goldman Sachs: The U.S. Treasury is expected to lean towards increasing the scale of short-term Treasury auctions

Goldman Sachs' William Marshall and Bill Zu stated that the U.S. Treasury's future increase in the scale of debt auctions may lean towards shorter-term securities. They expect that the nominal auction sizes for two-year, three-year, five-year, and seven-year Treasury securities will continue to increase, while the growth of floating rate notes will be smaller, and the auction sizes for ten-year, twenty-year, and thirty-year Treasury securities will remain stable, with this trend expected to begin in November 2026. They said, "Over time, we expect this will reduce the weighted average maturity (WAM) and see the share of short-term Treasuries steadily rise."

However, given that the Federal Reserve is expected to purchase about 50% of the net short-term Treasury supply over the next two years, the share of short-term Treasuries held by the private sector may remain roughly stable. (Jin Shi)