U.S. Treasury's Unchanged Auction Volumes Delay Necessary Adjustment -- Market Talk

0923 GMT - The U.S. Treasury's decision to keep coupon auction sizes and its forward guidance unchanged removes a near-term upside risk to yields but merely delays adjustment needed to address growing funding gaps, Julius Baer's Afonso Borges says in a note. The Treasury anticipates that auction sizes will remain steady "for at least the next several quarters." But this only postpones the eventual adjustment, the fixed income analyst says. "The November refunding, which will take place shortly after the midterm elections, offers a more politically palatable opportunity to soften the language and restore some issuance flexibility," Borges says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

August 06, 2026 05:23 ET (09:23 GMT)