Treasury's $75 B 3- and 6-month bill auction was very strong
Treasury's $75 B 3- and 6-month bill auction was very strong, supported by the heavy flight to safety bid in the market on tariff/trade fallout, with Wall Street over 2% lower on the session. The $39 B 3-month tranche stopped at 2.360%, through the 2.375% at the bid deadline. And it's 2 bps richer than last week's 2.380%. In fact it is the lowest since mid-November. Bids totaled nearly $136 B for a 3.52 cover, also measurably above last week's 3.17 and the 2.92 average. It's the highest since the identical reading from December. Indirect bidders took 53.8%, also much higher than the prior 44.4% and a 46.2% average, and is the highest since late March. The $36 B 6-month offering was awarded at 2.355%. It too traded through the 2.360% level at the deadline. And it is 2.5 bps rich to last week's 2.380% stop and is the lowest since October. There were $116.4 B in bids for a 3.26 cover, stronger than the prior 3.21 and the 3.06 average. It ties the April 22 sale for the highest reading since late November. Indirect bidders were awarded 42.7%, a tad below last week's 52.3%, but a little above the 41.7% average.