The US Treasury confirmed on August 5 that it will keep auction sizes for nominal interest-bearing securities and floating-rate notes unchanged, extending its guidance through at least mid-2027. Bank of America analysts estimate that Treasury bills could constitute nearly 25% of total outstanding debt by the end of fiscal year 2027, the highest proportion since 2004 excluding crisis periods. Primary dealers now project no increases to coupon issuance sizes until May 2027 or later. Stablecoin issuers such as Tether and Circle, major holders of short-term US government debt, stand to benefit from a deeper and more liquid pool of eligible reserve assets, which would structurally support the stablecoin ecosystem.
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