Treasury's $87 B 3- and 6-month bill sales were mixed
Treasury's $87 B 3- and 6-month bill sales were mixed with the longer tranche outperforming. The $45 B in 3-month bills stopped at 1.565%, tailing from the 1.560% at the bid deadline. And it's cheapened versus last week's 1.520%, and with the exception of last week's rate, it's the lowest since February 2018. There were $120.1 B in bids for a 2.70 cover, a little firmer than the 2.63 from last week but a little shy of the 2.83 average. Indirect bidders accepted a soft 31.6%, below both the prior week's 40.8% and the 47.5% average. And aside from the poor 21.6% from mid-August, this is the lowest takes since early January. The $42 B 6-month bill was awarded at 1.550%, through the 1.555% at the bid deadline, but is also a little cheaper than last week's 1.535%. But with the exception of last week's rate, this is the richest since early January 2018. Bids totaled $124.0 B for a 2.99 cover, stronger than last week's 2.69 and the 2.89 average. Indirect bidders accepted 55.7%, also better than the 39.8% previously and the 48.8% average.