The Treasury says it will borrow $1B less at its next debt auction, cutting the size of its 2-year offering to $34B from $35B. It's the first cut in borrowing since September 2010, according to rate strategist Ian Lyngen. The size of the offerings of other maturities remains the same.
The move comes as the Fed prepares to taper its QE asset purchases. Jeff Gundlach several months ago suggested tapering would begin not because of an improving economy, but because the Fed would have less Treasury paper it needed to mop up.