U.S. Treasury to Hold Benchmark T-Bill Auctions Steady, May Issue Cash Management Bill in November

The U.S. Treasury said in a statement released Wednesday that it expects to keep benchmark short-term Treasury bill auction sizes unchanged in the coming weeks and may issue a short-term cash management bill around late November to meet cash management needs. According to Sina Finance, the Treasury expects to reduce auction sizes for shorter-term Treasury bills in December, as corporate tax payments and non-withheld tax payments are expected to bring in funds in mid-December. Based on expected seasonal fiscal outflows, it expects to increase auction sizes for short-term Treasury bills across all maturities in January. The Treasury assumes a year-end cash balance of $850 billion. Based on current projections for the upcoming quarterly refunding period, the Treasury General Account balance could peak at $1.025 trillion in late November and late January, with a margin of $50 billion above or below that level, mainly driven by large outflows expected at those times.