Treasury Action: Treasury introduces its new 8-week bill today
Treasury Action: Treasury introduces its new 8-week bill today. The debt managers will announce the details of the "new bill on the block" at 11:00 ET, along with the 4-week bill, with both auctions Tuesday. Analysts're projecting a $35 B volume on the new 8-week tranche, at the upper end of the market range of $20 B to $35 B. The volume of the 3- and 6-month offering was trimmed for today's sale to $84 B in order to make room for this new issue. Analysts also expect the Treasury announce a reduction to the 4-week bill as well. Bill supply, as well as the FOMC's tightening posture, should keep upward pressure on rates. Note that the 4-week bill will eventually become a reopening of the 8-week, and after December 4, the auction announcements will be on Tuesdays, auctions on Thursdays, and settlements the following Tuesday.