Treasury's $78 B 3- and 6-month bill auctions were ok
Treasury's $78 B 3- and 6-month bill auctions were ok, but nothing special. The longer tranche priced well, after cheapening into the deadline, but demand was relatively lackluster. The $42 B 3-month tranche stopped on the screws at 1.530%, right where it traded at the bid deadline. This is fractionally cheaper than last week's 1.520% (which was one of the richest rates going back to February 2018). Bids totaled $119.1 B for a 2.87 cover, marginally softer than the 2.94 last week and the 2.91 average. Indirect bidders took 43.2%, also weaker than the prior 47.6% and the 50.9% average. The $36 B 6-month bill was awarded at 1.530%, through the 1.545% at the deadline. It's also a little higher than last week's 1.520%. There were $105.8 B in bids for a 2.98 cover, a little softer than last week's 3.09, but a little stronger than the 2.91 average. Indirect bidders took 41.5%, weaker than both the 53.2% previously and the 45.6% average.