Treasury's $78 B 3- and 6-month bill sale was mixed by on the tepid side
Treasury's $78 B 3- and 6-month bill sale was mixed by on the tepid side as the issues really had to cheapen up to get done. The upsized $42 B 3-month offering tailed to 0.310% versus the 0.305% at the bid deadline (and is much cheaper than last week's 0.250%). There were $141 B in bids for the shorter bill, resulting in a 3.37 cover. Though it's below the 3.42 and 3.40 from the prior two weeks, the slippage was a function of the increased volume. The cover did beat the 3.29 average. Indirect bidders took 33.6%, nearly three times the 12.8% previously, and is better than the 28.7% average. The $36 B 6-month bill also tailed to 0.490% from the 0.485% at the bid deadline (and is also much cheaper than last week's 0.420%). There were nearly $128 B in bids for a 3.58 cover, below the prior 3.65 but better than the 3.45 average. Indirect bidders accepted 50.2%, in line with last week's 51.3% but above the 47.2% average.