The U.S. Treasury is set to hold its coupon auctions next week. Here’s the schedule: – **June 24**: $69 billion in 2-year notes – **June 25**: $70 billion in 5-year notes – **June 26**: $44 billion in 7-year notes All these securities will settle on **June 30**. The President has mentioned that the Treasury plans to auction shorter notes first and then focus on longer-term bonds after interest rates decrease. However, experts agree that the Treasury should not try to time the market. This approach might change under President Trump’s leadership. The upcoming auctions, with large amounts of 2-year, 5-year, and 7-year notes offered on consecutive days, will give a clear view of government borrowing strategies and investor interest. Each note type reflects market sentiment at different maturity lengths, which is especially important as monetary policy shifts. Since all these bonds settle on June 30, funds will quickly move across portfolios, leading to adjustments in a short period. This clustering around the month’s end may result in rapid price changes. By starting with shorter notes, the Treasury maintains flexibility. Concentrating borrowing at the short end makes it easier to adjust as interest rate expectations change. The President’s approach, indicated by the auction sequence, shows a preference for shorter maturities before taking on longer-term risks. However, this assumes a strong link between timing and future interest rates. Analysts caution that relying on timing strategies might backfire. Successfully raising large sums depends on stable and predictable auction outcomes rather than guessing future bond yields. Synchronizing debt issuance with expected policy changes adds unnecessary complexity. If market demand perceptions lean too speculative or political, confidence may wane. There’s also a risk of bond price fluctuations if investors doubt the maturities being offered within the set timelines. If previous administrations focused on stability, a returning president may alter the approach. Past terms have suggested that this administration may prefer a more hands-on role in Treasury policy, possibly affecting the introduction of maturities, especially longer notes. A less predictable outlook on interest rates and inflation could change the mix of maturities to meet goals beyond just cost efficiency. With large auction volumes and settlement occurring at a busy time in the calendar, we may see shifts in swap markets. Dealers and real-money accounts will want to hedge against supply impacts, especially with June inflation data and any future guidance affecting the forward curve. The middle part of the curve may react to increased Treasury supply if demand softens. Additionally, spreads may widen if corporate issuers delay due to Treasury saturation. For those tracking swap spreads, convexity needs, and dollar funding, it’s essential to keep an eye on the discount curve during the settlement period. Auction tails and bid-to-cover ratios could provide valuable insights after a period of low-volatility activity. Borrowing strategies are often viewed separately, but issues arise when fiscal issuance competes with immediate clearing needs. Errors in estimating demand could result in significant consequences. Long-term borrowing costs could be particularly impacted if auctions are seen as attempts to time the market. As analysts review results from each auction day, movements in secondary prices could reveal crucial information.

Date	Security Type	Amount
June 24	2-Year Notes	$69 billion
June 25	5-Year Notes	$70 billion
June 26	7-Year Notes	$44 billion

here to set up a live account on VT Markets now