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Strong Demand For 26-Week Bill Issuance

US TSYS/SUPPLY
  • Today’s 13-week and 26-week Treasury bill auctions saw further solid demand.
  • The bid-to-cover for the 13-week was in keeping with the prior five-auction average (2.89x vs 2.90x), but the 3.10x for the 26-week was the highest bid-to-cover since the Sep 11 auction.
  • It pushes higher from the 3.03x as of Dec 11, but the extra demand was notably away from dealers, with the dealer take falling sharply from 46.1% to 30.7% (although on a relative basis its similar to the bid-to-cover metric being the lowest since Sep 11).

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