Bill Auctions See Higher Bid-To-Cover, Mixed Dealer Takes

A quick recap of today’s bills auctions vs recent trends amidst a still swift reduction in RRP usage (printing lows since Jul’21 for the past two days):

• The roughly monthly 52-week bill auction saw a high bid-to-cover of 3.56x vs the prior five-auction average of 3.02x, along with stronger peripheral stats with primary dealer take of 27.3% vs an average 30.9%.
• The usually weekly 42-day CMB auction meanwhile also saw a higher bid-to-cover of 2.92x vs a five-auction average 2.88x, although this came with primary dealer take rising to 41.9% vs an average 33.6%.
• It follows yesterday’s weekly 13- and 26-week auctions, which both also saw higher bid-to-covers (2.87x vs 2.84x av for 13w, 3.01x vs 2.76x av for 26w) although with mixed developments in primary dealer uptake.
• 13-week bills saw 40.3% dealer take vs an average 32.4% whereas the 26-week saw 37.1% vs 39.3%.