Debt Ceiling Uncertainty Is Creating a Wedge in T-Bill Auctions
- Four-week bills sold at 0.035%, eight-week bills sold at 0.06%
- Still no ‘confident consensus’ as to Treasury’s drop-dead date
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The U.S. Treasury may be months away from exhausting its borrowing authority, but a lack of consensus among investors about the specific timeline is already appearing in auctions for short-term paper.
The Treasury on Thursday sold $30 billion of four-week bills at 0.035% and the same amount of eight-week bills at 0.06%. That compares with last week’s sales, when the gap between the two stopout yields was a mere 0.015%. Bills maturing at the end of October and beginning of November are yielding more than the securities surrounding those dates.