MNI: PBOC Net drains CNY170.7 Bln via OMO Tuesday

MNI China Press Digest Feb 25: Private Sector, CSRC, DeepSeek

MNI: PBOC Sets Yuan Parity Higher At 7.1726 Tues; -0.76% Y/Y

MNI BRIEF: Bank of Korea Cuts Policy Rate To 2.75%: Press

MNI: BANK OF KOREA CUTS POLICY RATE TO 2.75%: PRESS

MNI NBH WATCH: Policy Hold Ahead of New Projections, Governor

MNI: JAPAN JAN SERVICES PPI +3.1% Y/Y; DEC REV +3.0%

EZ/UK T-Bill Calendar: 2/3-Month RATB Auction on Tuesday

EZ/UK Bond Supply Calendar: Spain Synd; IT, UK, DE Due Tuesday

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

US TSYS/SUPPLY: Soft Auctions Amid First 6-Week Benchmark Sale

US TSYS/SUPPLY
USBulletMarketsFixed Income BulletsNorth America
We don't usually cover t-bill auctions in any depth, but today's sales were unusual: 
  • The 52-week bill bid-to-cover was the lowest since September 2024 (3.03x); the 26-week saw its lowest since March 2024.
  • Another curiosity: the percentage allotted at high was the lowest for years for both the 13-week (8.5%, lowest since Oct 2024 which was 15 auctions ago) and 52-week (6.5%, lowest since Nov 2023 and 2nd lowest since October 2020).
  • Meanwhile, for the first time in an auction cycle, Treasury has made the 6-week bill a "benchmark" bill - joining the other major bills (eg 4- and 8-week) with regularly scheduled settlement and maturity cycles.
  • Previously it was just technically an ad hoc cash management bill (CMB) - the transition to benchmark status was announced in May 2024. Recall that Treasury made the 4-month bill a benchmark in October 2022.
  • Treasury began regular weekly issuance of the 6-week bill coming out of the resolution of the debt limit impasse in June 2023, and it was the only regularly issued CMB.
  • The inaugural benchmark sale saw a 2.49x bid/cover on a high yield of 4.27% - the yield was typical of recent 42-day CMB sales but the bid-cover was on the low side (longer-term average has been closer to 3.00x). 
image
206 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We don't usually cover t-bill auctions in any depth, but today's sales were unusual: 
  • The 52-week bill bid-to-cover was the lowest since September 2024 (3.03x); the 26-week saw its lowest since March 2024.
  • Another curiosity: the percentage allotted at high was the lowest for years for both the 13-week (8.5%, lowest since Oct 2024 which was 15 auctions ago) and 52-week (6.5%, lowest since Nov 2023 and 2nd lowest since October 2020).
  • Meanwhile, for the first time in an auction cycle, Treasury has made the 6-week bill a "benchmark" bill - joining the other major bills (eg 4- and 8-week) with regularly scheduled settlement and maturity cycles.
  • Previously it was just technically an ad hoc cash management bill (CMB) - the transition to benchmark status was announced in May 2024. Recall that Treasury made the 4-month bill a benchmark in October 2022.
  • Treasury began regular weekly issuance of the 6-week bill coming out of the resolution of the debt limit impasse in June 2023, and it was the only regularly issued CMB.
  • The inaugural benchmark sale saw a 2.49x bid/cover on a high yield of 4.27% - the yield was typical of recent 42-day CMB sales but the bid-cover was on the low side (longer-term average has been closer to 3.00x). 
image