2018 Economic Calendar
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6-Month Bill Auction  
Released On 2/20/2018 11:30:00 AM For 2/20/2018 11:30:00 AM
Auction Results
Total Amount$45 B 
6-Month Bill Treasury Rate1.820% 

Coverage was mixed for Tuesday morning's T-bill auctions, at 2.74 the lowest of the year for the 3-month but solid at 3.11 for the 6-month. In a reversal from the prior week, end investors strongly preferred the longer maturity, with non-dealers taking down only 47 percent of the $51 billion 3-month offering but 63 percent of the $45 billion offered in the 6-month. The awarded rates rose again from the prior week in anticipation of Fed tightening ahead, with the high discount rate up 6 basis points to 1.630 percent for the 3-month and up 3.5 basis points to 1.820 percent for the 6-month.

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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