Citigroup expects the US Treasury to cut $3 billion from each 20-year and 30-year bond auction and borrow more through short-term bills instead. Citi said the 20-year bond could even be canceled, with an announcement expected November 4.

The Treasury has not confirmed any change. Bills cost less today, but they mature within a year, so the government must refinance them far more often at whatever rate investors demand.

Why Is the Treasury Shrinking Its Long-Term Debt Sales?

Long-term borrowing costs sit near multi-decade highs. The 10-year yield closed at 5.24% on October 9 and the 30-year at 5.60%, according to Treasury data.

On October 1, the 10-year touched its highest level since…