the refunding as part of its regular quarterly refunding the us treasury announced wednesday it would sell 110 billion in notes and bonds next week that’s down from 120 billion last quarter the department will auction 50 billion of 3year treasury notes on feb 8 37 billion of 10year notes on feb 9 and 23 billion of 30year bonds on feb 10 big picture the treasury took another step in its plan to reduce the size of its coupon auction sizes the government has excess borrowing capacity after the response to the pandemic ballooned the deficit from 1 trillion in fiscal year 2019 to close to 3 trillion for the past two years reducing coupon auctions treasury announced it will reduce nominal coupon issuance by 111 billion during the february – april quarter the department said it would reduce the sizes of 2year 3year and 5year notes by 2 billion per month over the quarter treasury will also reduce the size of the 7year note by 3 billion per month over the same period treasury expects to reduce the size of the new and reopened 10year treasury note auction and the new and reopened 30year bond auction by 2 billion each starting in february treasury will reduce the new and reopened 20year bond auction sizes by 4 billion each treasury will reduce the february and march floatingrate note reopening auction sizes by 2 billion to 22 billion the size of the next newissue 2year floating rate note in april by 2 billion to 24 billion tips financing treasury expects to increase the april 5year tips new issue auction size by 1 billion to 20 billion longerterm tips auction sizes will remain unchanged bill issuance treasury is actively evaluating whether to change the 17week cash management bill to “benchmark status”