On September 8, the US Treasury issued $92 billion in 13-week bills and $79 billion in 26-week bills, totaling $171 billion in short-term debt. The 13-week bills cleared at rates between 3.89% and 3.90%, while the 26-week bills ranged from 3.89% to 4.02%.
Demand patterns varied between the two tenors. The bid-to-cover ratio for 13-week bills reached approximately 2.61x, whereas the 26-week bills saw higher interest with a ratio of 2.88x. Competitive pressure increased for the longer tenor, as indicated by a rise in the awarded-high percentage.
By September 14, secondary market yields for 3-month bills reached about 4.01%, and 6-month bills hit 4.15%. These figures exceed the auction clearing rates, meaning investors currently hold assets trading at lower prices than their purchase value.
Market participants are monitoring bid-to-cover ratios closely. While current levels remain above 2.5x, a decline toward 2.0x could signal that investor demand is failing to keep pace with the borrowing requirements of the government.
