Yields rose again in Thursday's auctions. The Treasury sold $92.28 billion split evenly between the 4- and 8-week maturities. The former attracted $126.8 billion in tenders, while the latter received only $101.4 billion.
The 4-week yield rose from last week's 3.65 percent to four percent flat, a new high for this maturity. The same happened in the 8-week auction, where the median yield landed at 4.32 percent. This is its second week in a row above the four-percent threshold.
While marginal in size, these two auctions nudged the estimated average yield on the U.S. debt up another percentage point, to 2.22 percent.
The upward trend in short-term bills is a bit concerning, as it reinforces the overall inverted yield curve that the U.S. economy is currently living with.
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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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