Roughed-Up Treasury Market Must Now Reckon With Supply Shifts

Sat, January 15, 2022

Bloomberg News

Meanwhile, the Treasury Department, which reduced the size of coupon-bearing dsebt auctions in November for the first time in five years to bring them in line with lower-than-anticipated government expenses, is expected to do so again in February, regardless of the Fed’s plans...
The prospect of the Fed allowing some of its Treasury holdings to mature probably won’t forestall auction size cuts in February, but it makes subsequent reductions less likely, said Lou Crandall, chief economist at Wrightson ICAP LLC.