2018 Economic Calendar
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6-Month Bill Auction  
Released On 1/16/2018 11:30:00 AM For 1/16/2018 11:30:00 AM
Auction Results
Total Amount$42 B 
6-Month Bill Treasury Rate1.600% 

Coverage was solid for Tuesday morning's T-bill auctions, at 3.15 for the 3-month and 3.18 for the 6-month. In contrast to last week, end investors preferred the shorter maturity, with non-dealers taking down 59 percent of the $48 billion 3-month offering, their largest share since August 14, but only a soft 46 percent of the $42 billion offered in the 6-month. The 1.430 percent high discount rate awarded for the 3-month was unchanged from last week's rate while the 6-month rate was up 2.5 basis points at 1.600 percent.

Treasury bills are sold at public auctions every week. The 6-month bill is also known as the 26- 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. Six-month bills are announced on Thursday for auction the following Monday and 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 6-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 6-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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