The U.S. Treasury is set to auction a record $100B in 4-week T-bills this week highlighting the scale of its borrowing needs and strong investor demand. With deficits growing and longer yields too high, short-term issuance is ramping fast. More big auctions likely ahead. https://t.co/MYPEe5XVo0
USTs: 4-Week Bills offering increased to $100B from $95B prior 8-Week Bills offering held at $85B
The US government plans to borrow $100 billion in a single Treasury debt sale this week, an unprecedented figure that showcases both the magnitude of its borrowing needs and its ability to attract investors https://t.co/UVrxLFn8gZ
Investor demand for U.S. short-term debt remained firm at the start of the week as the Treasury sold $87 billion of three-month bills at a high rate of 4.165%, drawing a bid-to-cover ratio of 3.17. The department also placed $77 billion of six-month bills at 3.980%, with a 3.14 bid-to-cover. Both auctions cleared without signs of strain, suggesting robust appetite for front-end securities even as the federal deficit widens. Building on that momentum, the Treasury said it will auction a record $100 billion of four-week bills on Aug. 7, settling Aug. 12. The size tops the previous $95 billion offering and underscores the government’s escalating near-term funding needs. The larger sale comes as officials lean on short-dated issues, viewed by investors as a haven from the higher yields demanded on longer maturities.