US sells 3-mnth bills at high-rate 3.970%, B/C 2.64x; sells 6-mnth bills at high-rate 3.970%, B/C 2.74x

Identical high rates across the 3- and 6-month tenors indicate a flat bill curve at the front end, the usual signature of an on-hold policy rate with little priced change over the horizon in question. Bid-to-covers in this range are within the normal band for these auctions; the established pattern is that the 6-month tends to draw slightly better coverage than the 3-month, as it does here, reflecting demand for the longer runway past known supply and event dates. What has historically mattered at the bill auctions is the tail versus the when-issued and the indirect share as a read on foreign and money-fund demand, neither of which is carried in the headline. Worth watching is any sustained drift in coverage or tailing across consecutive weeks, since that has tended to be the early tell of reserve drainage or year-end-type funding stress long before it shows in the coupon curve.