Treasury's $78 B 3- and 6-month bill auctions garnered better than average demand
Treasury's $78 B 3- and 6-month bill auctions garnered better than average demand, and generally the best in a month. But, the bidding stats were flattered by the reduced volumes. The debt managers have been shaving auction sizes in recent weeks, despite projecting increases through November, until reducing amounts into year end. The Treasury has cut the 3- and 6-month bills to the current $78 B amount from $87 B during the fall through November 18. This week's offerings were trimmed by $3 B in each tranche. The $42 B 3-month offering stopped at 1.560%, 2 bps through 1.580% at the bid deadline. And it's the same as last week's rate. There were nearly $126.5 B in bids for a 3.03 cover, stronger than last week's 2.89 and the 2.86 average. indeed, it is the highest since late October 28. Indirect bidders accepted 55.8%, also above the 50.9% previously and the 48.6% average. And it's the best since October 28. The $36 B 6-month tranche was awarded at 1.565%, also 2 bps through the 1.585% at the deadline. Bids totaled almost $111.4 B for a 3.11 cover, also stronger than last week's 2.73, and the 2.85 average. Indirect bidders took 52.3%, also much better than the 32.8% last week and the 47.0% average.