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Quarterly refunding announcement

The Treasury's quarterly statement of how much it will borrow and in which maturities, published in early February, May, August and November.

The refunding tells the market the size of upcoming auctions and the mix between short treasury-bill issuance and longer coupon issuance. That mix is effectively a duration supply decision, and the long end prices it immediately.

A shift toward bills funds the deficit without adding duration, which supports long bonds. A shift toward 10s and 30s forces the private sector to absorb more interest-rate risk, which usually pushes term-premium and long yields up. Since 2023 the QRA has been one of the highest-impact scheduled events in the rates calendar.

Example: the Treasury guides to $125 billion of coupon issuance versus $114 billion expected, with the increment weighted to 10s and 30s. The 30-year sells off 8 basis points on the release and the curve bear steepens.

Related: treasury-auction, term-premium, treasury-bond, bear-steepener, debt-ceiling

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