US Treasury removes "at least," long-term bond supply faces adjustment window! Could AI financing costs be nearing an inflection point?

Zhitong Finance APP has learned that the U.S. Treasury maintained next week's $125 billion refunding issuance, raising $28 billion in net new cash, with the issuance size in line with bond market traders' general expectations. The key change is the removal of "at least," while it still says auction sizes will be maintained "for the next several quarters." After the U.S. Treasury's latest quarterly refunding statement was disclosed, some analysts accordingly interpreted the adjustment window as the first half of 2027, but the Treasury has not set a date nor announced a reduction in long-term Treasury issuance.