Treasury's auctions of $75 B in 4- and 8-week bills were mixed
Treasury's auctions of $75 B in 4- and 8-week bills were mixed, with the longer tranche outperforming. It looks as though near term risks and the diminished probability for a 50 bp Fed rate cut at the July 30, 31 FOMC limited demand for the shorter dated maturity. The $40 B 4-week stopped at 2.145%, right on the screws and where it traded at the bid deadline. It's fractionally cheaper than last week's 2.140%, after having richened at each successive auction since early May. There were nearly $108.3 B in bids for a 2.74 cover, below both the 2.86 from last week and the 2.80 average. Indirect bidders took 29.3%, also not up to the prior week's 36.2% and the 40.0% average. The $35 B 8-week offering was awarded at 2.120%, stopping through the 2.135% at the deadline, but is a little cheaper than the 2.105% previously. Bids totaled almost $110.7 B for a 3.17 cover, stronger than last week's 2.98 and the 2.96 average. Indirect bidders accepted 55.1%, also better than the 48.2% previously and the 35.9% average.