Treasury's auctions of $70 B in 4- and 8-week bills were a little sketchy
Treasury's auctions of $70 B in 4- and 8-week bills were a little sketchy. Bidding stats on both were subpar but the longer tranche really underperformed. It looks like it's been caught up in the debt limit worries as the September 17 maturity date lines up with one of the Treasury's scenarios where it's out of cash. The $35 B 4-week stopped through at 2.090%, after cheapening to 2.125% in to the bid deadline. And it compares to last week's 2.135%. There were $100.9 B in bids for a solid 2.93 cover, not quite up to the prior 3.04 (which was the best since January), but stronger than the 2.78 average. Indirect bidders took 42.8%, less than the 53.8% previously, though above the 38.3% average. The $35 8-week offering was awarded at 2.120%, tailing slightly from the 2.115% at the deadline, though is 1 bp richer than last week's 2.130%. Bids totaled $85.2 B for a 2.45 cover, well below last week's 2.99 and the 2.93 average. Indirect bidder accepted 35.7%, also bell the 56.9% previously and the 40.8% average.