The US Treasury maintains its debt issuance strategy unchanged and is monitoring the rising demand for treasury securities.

The U.S. Treasury Department said on Wednesday that it is monitoring the increase in demand for the shortest-term federal securities, coming from both the Federal Reserve and the private sector, but has not yet signaled a reduction in the size of medium and long-term bond issuances. In its so-called quarterly refunding statement released on Wednesday, the Treasury Department said it expects to maintain the auction sizes for nominal notes, long-term bonds, and floating rate notes "at least over the next few quarters." The U.S. debt management agency has been following this forward guidance for two years. The department stated that looking ahead, it will "continue to assess potential increases in the issuance sizes of nominal coupon and floating rate notes, focusing on structural demand trends, and potential costs and risks of different issuance structures." As it considers the possibility of increasing the size of such auctions in the future, the Treasury Department said it is "monitoring" the Fed's expansion of Treasury securities purchases. Treasury securities have maturities of one year or less. The Fed announced in December that it would purchase $400 billion of Treasury securities every month until April to ensure ample reserves in the banking system. The Treasury Department also said it is monitoring the "growth in demand for Treasury securities from the private sector."