The Treasury said it will offer a quarterly refunding package of $125 billion to refund $111 billion in maturing securities and to raise $14.0 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.

Regarding the buyback program, the Treasury said it would conduct weekly buybacks of up to $4 billion per operation in Treasury coupon securities. In longer maturities, Treasury plans two operations, each up to $2 billion, over the quarter. Treasury also plans two operations, each up to $500 million, in each of the TIPS buckets.

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.