Wall Street Dealers Shred Treasury Auction Size Forecasts After Bessent Remarks

 

Wall Street dealers — until recently expecting US government debt auction sizes to resume growing next year — are going back to the drawing board after comments by Treasury Secretary Scott Bessent this week.

Interest-rate strategists at Bank of America Corp. scrapped their earlier forecast for note and bond auction size increases beginning in February, predicting levels will remain unchanged into 2027. Any increase in the borrowing need — which is expected based on federal deficit trends — will be met with more issuance of bills, which mature within a year, they said in a note Wednesday.

https://www.bloomberg.com/news/articles/2025-07-02/heeding-bessent-dealers-shred-treasury-auction-size-forecasts