Thursday Treasury auctions on 4- and 8-week bills sold $46.2 billion under each maturity, for a total of $93.2 billion worth of debt. The 4-week tendered $143.3 billion, while the $8-week tendered 123.6 billion.
The two bills exhibit different T/A ratios, with the 4-week at an elevated 3.1—the third week in a row above 3.00—and the 8-week at 2.67, the lowest in four weeks.
Median yield was stable for both maturities. The 4-week sold at 3.62 percent, the second week in a row with declining yield (3.645 last week, 3.9 the week before that). The 8-week yield did not decline, but stayed virtually unchanged: this week's 3.995 percent was well in line with 3.91 from last week and 4.05 percent from the week before.
Both these debt auctions replaced significantly larger, maturing batches. The maturing 4-week was worth $66.9 billion; the 8-week replaced $52.2 billion. In other words, the Treasury chose not to replace 22.4 percent of the maturing debt.
There were only marginal changes in secondary-market yield. The inverted yield curve remains solidly in place.
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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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