Treasury's bill auctions were soft
Treasury's bill auctions were soft, probably on the risk of higher rates ahead and with the likelihood of increased supply. Increased auction sizes also weakened some of the results. The $60 B 4-week bill (up from $55 B previously) stopped at 1.495%, tailing out from the 1.475% at the bid deadline. And it's substantially cheaper than last week's 1.380%. Bids totaled $166.8 B for a 2.80 cover, better than the aberrantly low 2.48, but below the 3.03 average. Indirect bidders took 36.3%, a little above last week's 33.6%, and the 30.4% average. The $22 B 52-week bill (boosted from $20 B) was awarded at 2.020%, just through the 2.025% at the bid deadline, and is cheaper than the 1.830% rate in January. Bids totaled $65.6 B for a 3.00 cover, below last month's 3.36 and the 3.20 average. In fact, it's the second lowest since May. Indirect bidders accepted only 28.2% versus the prior 37.8% and the 39.2% average. It's also the weakest since May.