Treasury's auctions of $95 B in 4- and 8-week bills were mixed
Treasury's auctions of $95 B in 4- and 8-week bills were mixed, with the shorter issue underperforming, but it was in part hurt by the increased size. The $55 B 4-week issue tailed out to 2.040%, after cheapening to 2.035% at the bid deadline, though it's still 3 bps rich to last week's 2.065%. And it's the lowest award rate since September. There were $134.3 B in bids for a 2.47 cover. While that's well below the 2.64 from last week and the 2.83 average, the decline is a result of the increase in the auction volume over the last several weeks. This is the largest volume since March. This ties July 3 for the lowest cover ratio since March 21 when $60 B was offered. Indirect bidders took 32.5%, below last week's 40.1% and the 39.1% average, and is the lowest since July 3. The $40 B 8-week issue was awarded at 1.950%, through the 1.975% at the deadline, and it compares to last week's 2.050%. This is now a record low award rate, though the auctions have only existed since October 16. Bids totaled $121.5 B for a 3.05 cover, less than the 3.24 last week, but better than the 2.84 average. Indirect bidders accepted 55.9%, stronger than the prior 45.1% and the 40.4% average, and it's just shy of the 56.9% record peak from July 11.