Treasury WI 3Y yield 3.662% before $58 billion auction

Treasury WI 3Y yield 3.662% before $58 billion auction

The 3-year Treasury yield stands at 3.662% as of July 2, 2025, ahead of the upcoming $58 billion auction scheduled for August 5. This yield, which reflects the interest rate at which the government can borrow money for three years, is a key indicator of market sentiment and economic expectations.

The Treasury Department has announced its intention to sell $125 billion in notes and bonds next week, including $58 billion in 3-year Treasury notes (BX:TMUBMUSD03Y) on August 5, $42 billion in 10-year notes (BX:TMUBMUSD10Y) on August 6, and $25 billion in 30-year bonds (BX:TMUBMUSD30Y) on August 7 [1]. The auction sizes are expected to remain steady for the next several quarters, according to the Treasury [1].

The current yield of 3.662% is a result of the ongoing auction calendar and market dynamics. Treasury yields have shown modest movements in recent days, reflecting a cautious investor stance ahead of the upcoming heavy issuance week [2]. The 2-year Treasury yield rose by 2.3 basis points to 3.702%, the 10-year yield increased by 0.8 basis points to 4.204%, and the 30-year yield held steady at 4.796% on Tuesday morning in Asia [2].

The upcoming auctions will serve as a critical test of market demand for U.S. Treasuries. If demand holds steady or proves strong, it may indicate a vote of confidence in the U.S. economy and its fiscal trajectory. However, if buyers balk and yields spike, it could lead to increased volatility in equities, credit markets, and global currencies [2].

Investors are closely watching the Treasury's actions and market reactions, with analysts debating when coupon auction sizes will need to be raised again. Thomas Simons, chief U.S. economist at Jefferies, suggests that front-end issuance will be sufficient to get the Treasury through the remainder of the year and likely into mid-2026 before auction sizes will need to be raised [1].

In summary, the 3-year Treasury yield is currently at 3.662% ahead of the $58 billion auction, reflecting market caution and anticipation of the upcoming issuance calendar. The Treasury's steady auction sizes and the ongoing auction calendar will continue to influence yields and market sentiment in the coming weeks.

References:
[1] https://www.morningstar.com/news/marketwatch/2025073037/treasury-says-it-wont-have-to-increase-coupon-auction-sizes-for-next-several-quarters
[2] https://www.investing.com/analysis/us-treasury-yields-tick-higher-ahead-of-heavy-auction-week-200664827