Market Digests $1 Trillion Jump in T-Bill Supply Without Hiccup
- Market participants have been willing to absorb issuance
- Reverse repo facility usage has stalled around $1.8 trillion
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The government has issued an eye-watering $1 trillion in Treasury bills since the debt-ceiling was suspended in early June. So far, the market hasn’t batted an eye.
For all the concerns about whether the market would be able to take up the supply, investors faced with uncertainty over the economy and the Federal Reserve’s policy path have piled into short-term debt, earning more than 5% yield to mop up the issuance.