The Treasury Borrowing Advisory Committee met on February 3, 2026, to discuss debt management strategies and market trends. The committee recommended maintaining nominal coupon, FRN, and TIPS auction sizes at current levels. Key discussions included first-quarter fiscal data showing increased customs deposits and tax revenues, offset by lower corporate tax collections. Treasury staff highlighted projected funding shortfalls in FY2027-28 and reviewed primary dealer expectations for coupon issuance. The committee also examined potential SOFR-indexed FRN issuances, noting both demand and risks. Dealers supported quarterly 7-year note issuances with reopenings to improve secondary market liquidity. The meeting concluded with unanimous agreement to sustain current auction levels amid evolving market conditions and Federal Reserve balance sheet dynamics.
https://home.treasury.gov/news/press-releases/sb0386
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