(Reuters) – On Wednesday, the U.S. Treasury Department stated that they would reduce coupon issuance in all maturities during the next quarter. The largest reductions will be made in the 7- and 20-year maturities.

According to the Treasury, it will reduce issuance because current auction size would lead to excessive borrowing in the medium term. To pay COVID-19-related spending, the U.S. government increased its auction size in 2020.

Seven-year notes and 20-year bond auctions will see relatively larger reductions, which the Treasury said is due to “Treasury’s desire to better balance structural supply and demand at those tenors.”

“These tenors were increased significantly more than others in response to the increased borrowing needs driven by the COVID-19 pandemic. Reduction of supply at these tenors has also been a focus of feedback from a variety of market participants,” the Treasury said in a statement.

According to the Treasury, it plans to reduce the 2-, 3-, and 5-year note auctions’ size by $2 billion each month during the next quarter. Meanwhile, the 7-year auctions will see a decrease of $3 billion per monthly in that same time period.

Reopened and new 10-year note auctions and 30-year bond bidding will also be cut by $2 billion. The 20-year bond bidding will go down by $4 billion. It is expected that the January 2-year floating-rate notes auction will be cut by 2 billion. These cuts will result in a decrease of $84 billion in issuance from November through January.

According to the Treasury, it plans on selling $56 billion of three-year notes next week and $39 billion for 10-year notes. It also intends to sell $25 billion worth of 30-year bonds.

According to the Treasury, Monday’s announcement was that they plan to borrow $1.015 Trillion in the fourth-quarter. That is higher than the August estimate, $703 Billion, because of a lower starting balance.