Goldman Sachs: U.S. Treasury Department Expected to Favor Increasing Short-Term Treasury Auctions

William Marshall and Bill Zu from Goldman Sachs stated that the U.S. Treasury Department is likely to increase the scale of short-term Treasury auctions in the future. They anticipate that the issuance of nominal two-year, three-year, five-year, and seven-year Treasuries will continue to grow, while the increase in floating rate notes will be modest. The auction sizes for 10-year, 20-year, and 30-year Treasuries are expected to remain stable, with this trend beginning around November 2026.

They commented, "Over time, we expect this to reduce the weighted average maturity (WAM) and see a steady rise in the share of short-term Treasuries." However, given the Federal Reserve's expectation to purchase about 50% of 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. (Jin10)