Danske Bank: The US Treasury Department may begin adjusting debt guidelines in the first half of 2026.

In a report, Jens Naervig Pedersen of Danske Bank said that the U.S. Treasury Department is expected to adjust its debt issuance guidelines starting in the first half of 2026. The Treasury Department, in its quarterly refunding announcement released on Wednesday, maintained the size of auctions for fixed-rate bonds unchanged, in line with market expectations. The guidelines also reiterated the intention to keep auction sizes unchanged for the "next few quarters." However, the statement added, "The Department of the Treasury has begun to preliminarily consider increasing the size of future nominal coupon securities and floating rate notes auctions." The head of foreign exchange and interest rate strategy at Danske Bank stated that overall, this move is unfavorable for duration risk.