Advisory Committee Recommends Steady Auction Sizes, Eyes Buyback Enhancements
The Treasury Borrowing Advisory Committee, meeting July 29, 2025, in a closed Washington, D.C. session, recommended maintaining current Treasury note and bond auction sizes through 2025, citing sufficient funding despite projected deficits rising to $2 trillion by 2027.
Led by Chair Deirdre Dunn, with Citigroup’s Barrie Ringelheim assisting, the committee reviewed fiscal data showing a 7% rise in receipts to $4.01 trillion and a 6% increase in outlays to $5.3 trillion for FY2025, driven by higher interest costs and defense spending.
Discussions highlighted uncertainty in future borrowing needs due to monetary policy and trade tariff impacts.
The committee proposed enhancing Treasury’s buyback program, suggesting larger operations in 10- to 30-year sectors to boost liquidity.
These recommendations, presented to Deputy Secretary Faulkender, signal cautious optimism amid economic volatility, with stable financing critical for public confidence in U.S. debt management.
Leave a Reply