2017 Economic Calendar
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3-Month Bill Auction  
Released On 3/20/2017 11:30:00 AM For 3/20/2017 11:30:00 AM
Auction Results
Total Amount$39 B 
3-Month Bill Treasury Rate0.760% 

Coverage was soft for Monday's T-bill auctions, at 3.08 for the 3-month and 3.10 for the 6-month the weakest of the year for both bills, partly due to the size of the supply, which was the largest weekly offering for both issues this year. End investor demand was also on the weak side, with non-dealers taking down only 37 percent of the $39 billion 3-month offering and 41 percent of the $33 billion offered of the 6-month. The high discount rates, at 0.760 percent for the 3-month and 0.890 percent for the 6-month, came in 2 basis points lower than in the prior week's pre-rate-hike auctions.

Treasury bills are sold at public auctions every week. The 3-month bill is also known as the 13-week bill. Competitive bids at these auctions determine the interest rate paid on each issue. A group of securities dealers, known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold the bills, resell the bills to their clients or trade them with other securities firms. Typically, the New York Fed approves about 20 securities firms to be primary dealers but that number dropped sharply during the 2008 financial crisis as some were merged into other firms or went bankrupt. The Fed has been rebuilding that number regularly and the latest list can be found here. Since these are public auctions, the Treasury must announce the size, date and time of the auction every week. Three-month bills are announced on Thursday for auction the following Monday and are issued (settled) on Thursday. If a Monday is a banking holiday, the bills are auctioned on Tuesday. (Department of the Treasury)  Why Investors Care

Data Source: Haver Analytics
The 3-month bill rate is usually similar to the federal funds rate target; often when bond investors expect a rising rate environment, it is higher than the funds rate, but when investors expect rates to decline, it will be lower than the funds rate target. The 3-month bill rate depicted in this chart represents the high discount rate from the Treasury's weekly auction on Mondays. It only represents one moment in time, and is not an average of daily numbers. The date on the chart is associated with the issue (or settlement) date of the Treasury security, which is on the Thursday of the week that the security is auctioned. Our grid tables show the auction date of the security, which is usually on Mondays.
Data Source: Haver Analytics

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