The U.S. Treasury department is engaging with primary dealers to gather insights on stablecoins and potential adjustments to the 20-year bond auction schedule. This may involve shortening the when-issued period, which typically begins after a new security announcement and ends before the issuance date, allowing investors to trade and assess the security's price.

Meetings with primary dealers are scheduled on April 24 and 25, where discussions on budget deficit, debt issuance estimates, and other matters will inform the refunding announcement in May. Primary dealers are crucial trading partners of the New York Federal Reserve, facilitating U.S. government debt transactions.

The current 20-year auction process sees announcements mid-month, settlements towards month-end, and a significant "dated date" period marking when bond interest starts accruing. This calculation is essential, especially for accrued interest when a bond changes hands between payment dates.

The longer when-issued period for 20-year bond sales, which includes Treasury Inflation-Protected Securities auctions, is being reconsidered. Additionally, the Treasury department is seeking dealer feedback on the potential use of Treasury securities as reserve assets for stablecoins, given recent legislative actions regarding stablecoin regulation.

Stablecoins, a form of cryptocurrency pegged to a stable asset, often the U.S. dollar, are increasingly popular for facilitating quick fund transfers among crypto traders. Legislation in both the House of Representatives and the Senate aims to establish regulatory frameworks for stablecoins, reflecting the growing importance and scrutiny of these digital assets.