Demand for 3-month US Treasury bills falls to the weakest level since 2024
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The U.S. Treasury issued $92 billion in three-month Treasury bills with a highest winning bid rate of 3.74%, marking the highest since November; the winning bid rate for $72 billion in six-month Treasury bills was 3.84%. In the three-month Treasury bill issuance, indirect bidders received only 41% of allocations, the lowest since November 2024. In the six-month issuance, indirect bidders received 56.4%, lower than the three-month average of 63.1%. “This week’s record-high auction size may be one of the reasons for the weak auction results, but the scale increase is not sufficient to fully explain the outcome,” wrote Oxford Economics analyst John Canavan in a report. “Since the FOMC decision, expectations for Federal Reserve rate hikes have fluctuated considerably, but are down about 15 basis points from a week earlier—this is also insufficient to explain why demand was so weak today.”
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