By 
Reuters
Expected cuts to Treasury auctions may be ‘calm before the storm’
The U.S. Treasury Department is expected to reduce the size of its upcoming auctions when it announces its funding plan for the coming quarter on Monday, the first step in lowering debt supply as the federal government moves past its emergency-level response to the coronavirus pandemic. The majority of those cuts will come in securities with a 7-year duration or less, with a $2 billion per month cut in Treasury bonds with durations of 2, 3, and 5 years, and $3 billion per month cuts in 7, 10, and 20-year Treasuries, the bank estimates. “After ramping up coupon issuance to fund pandemic spending, it is now time for Treasury to start reducing issuance sizes commensurate with more normal deficits,” said Meghan Swiber, a rates strategist at Bank of America Global Research.
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