Treasury's $87 B 3- and 6-month bill auctions were solid
Treasury's $87 B 3- and 6-month bill auctions were solid, garnering a lot of support from the weakness in the ISM, the drop in equities, and the climb in Fed easing expectations. Both priced very well and saw strong bidding despite some of the richest award rates in over a year. The $45 B 3-month bill stopped through at 1.930% versus 1.940% at the bid deadline, and 2 bps richer than last week's 1.950%. It's the second lowest award rate (excluding August 19) since June 2018. There were nearly $131.7 B in bids for a 2.95 cover, better than last week's 2.74 and the 2.86 average. Indirect bidders took 52.6%, also above the 46.2% previously and the 46.3% average. The $42 B 6-month was awarded at 1.825%, also through the 1.835% at the deadline and below the prior 1.840%. It is the lowest rate since February 2018. Bids totaled $129.1 B for a 3.10 cover, stronger than last week's 3.05 and the 2.89 average. Indirect bidders took 49.7%, not up to the 62.8% last week but above the 45.3% average.