2018 Economic Calendar
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4-Week Bill Auction  
Released On 1/23/2018 11:30:00 AM For 1/23/2018 11:30:00 AM
Auction Results
Total Amount$35 B 
4-Week Bill Treasury Rate1.230% 

Coverage, at 3.52, was the highest since March 7 of last year for the weekly 4-week T-bill auction, boosted by the smaller than usual $35 billion size of the offering. Presented with the reduced supply, end investors bid aggressively, with non-dealers taking down an above average 57 percent of the Treasury offering. The 1.230 percent high discount rate was 6.5 basis points below last week's awarded rate.

Treasury bills are sold at public auctions every week. 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. Four-week bills are announced on Monday for a Tuesday auction and are issued (settled) on Thursday of the same week. If a Monday is a banking holiday, the bills are auctioned on Wednesday. (Department of the Treasury)  Why Investors Care

Data Source: Haver Analytics
The 4-week note was instituted to replace the necessity for sporadic cash management bills. This weekly auction is more predictable for investors. Predictability in the Treasury market is a highly rated feature that promotes demand for these bills. The 4-week bill rate depicted in this chart represents the high discount rate from the Treasury's weekly auction on Tuesdays. 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 Tuesdays.
Data Source: Haver Analytics

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