Treasury's upsized $50 B 4-week bill sale was very well sponsored
Treasury's upsized $50 B 4-week bill sale was very well sponsored as the market was hungry for bills after the cut backs due to the debt limit (size went from $50 B on January 9 to $15 B on February 6). The issue stopped at 1.360%, well through the 1.390% at the bid deadline. And it is much richer than last week's 1.480%, which was negatively impacted by worries over the debt ceiling. There were nearly $162.9 B in bids for a 3.27 cover, better than the prior 3.16 and the 3.06 average, despite the hefty $35 B increase in issue volume. Indirect bidders accepted 37.7%, three times last week's 12.5% and better than the 31.8% average. Meanwhile, the $50 B 55-day cash management bill garnered decent interest. It was awarded at 1.560%, cheaper than the 1.440% rate from the $30 B February 6 CMB. There were nearly $126.8 B in bids for a 2.54 cover, below the prior 3.80 (smaller amount), while indirect bidders took 19.1%, considerably less than February's 60.0%.