Monday's Treasury auctions sold $55.84 billion of debt under the 13-week maturity. Attracting $140.36 billion in tender offers, the auction produced a T/A of 2.51. This ratio is a little bit higher than most of the past 13 weekly auctions, with only two producing a higher T/A.
The median yield of 4.2 percent is almost identical to the yield from the past three auctions. It was 0.99 percentage points higher than on the maturing batch of $55.8 billion.
In addition to the 13-week, the Treasury sold $46.53 billion worth of 26-week bills.Tendering $130.02 billion, this auction came out with the highest 26-week T/A in five weeks.
This auction produced a median yield of 4.5 percent, well in line with the past five weekly auctions. Here, though, the new yield exceeded the yield of the maturing batch by a higher margin than for the 13-week. The outgoing 26-week bills were worth $43.9 billion and yielded 2.285 percent.
The annualized debt cost increase at the 26-week auction was $1.091 billion. The 13-week raised the annualized debt cost by $554 million.
As of Monday, the estimated average interest rate on the U.S. government debt is 2.17 percent. At the beginning of this fiscal year, on October 1, that rate was 1.87 percent.
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We do not give investment advice.
This blog provides analytical information solely for the purposes of 1) predicting the cost of the federal debt, and 2) for assessing the risk for a U.S. fiscal crisis. All information published here, forecasting and other, is based on publicly available data from the U.S. Treasury, including but not limited to approximately 65 percent of the current debt; on macroeconomic data, including but not limited to monetary policy decisions by the Federal Reserve; and on macroeconomic theory.
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