The Treasury raised its quarterly refunding package to $125 billion, up $4 billion from $121 billion last time, to refund $107.8 billion in maturing securities and to raise $17.2 billion in new cash from private investors.

The refunding package consists of $58 billion in 3-year notes, $42 billion in 10-year notes, and $25 billion in 30-year bonds.

The rest of Treasury's funding needs will be met with the weekly T-bill auctions, cash management bills (CMBs), the monthly note, bond, Treasury Inflation-Protected securities (TIPS) auctions, and 2-year Floating Rate Note (FRN) auctions.

Treasury launched its buyback program, with the first operation scheduled on May 29, to be conducted via primary dealers. Treasury weekly buybacks of up to $2 billion per operation in nominal coupon securities and up to $500 million per operation in TIPS through July 2024.

Treasury also said it will make the regular 6-week CMB into a benchmark bill which means it will be part of regular weekly bill issuance schedule.

Treasury said it would raise the offering amounts for the 4-, 6-, and 8-week bill auctions to meet one-week cash needs around the end of May. Then, with the June 15th non-withheld and corporate tax date in mind, Treasury expects to make modest reductions to short-dated bill auction sizes in early to mid-June. After that, during July, Treasury said it expects short-dated bill auctions to return to levels around the highs of February and March.

Each quarter the U.S. Treasury announces its funding needs for the next two quarters. The announcement includes which securities will be offered and the dates of their announcement, auction and settlement.

Bond market players pay attention to this release so that they know the degree of looming supply of Treasuries coming onto the market so that they can evaluate what appropriate yields might be for trading. Heavy supply coming onto the market suggests higher yields.