US sells 6-wk bills at high-rate 3.735%, B/C 2.85x; sells 1-yr bills at high-rate 3.980%, B/C 3.61x

A cover in the upper half of the recent range points to dealers and money funds absorbing supply cleanly, while a tail of a basis point or more tends to flag indigestion that, if repeated across successive weeks, has historically preceded cheapening at the very front of the curve. The split between the six-week and the one-year tenors is itself the tell: demand for the longer bill is the cleaner read on where the market prices the front end of the rate path over the coming year, whereas the shorter tenor is dominated by cash-management and quarter-end dynamics. Context that has mattered in past episodes of heavy bill supply is the pace of Treasury issuance against money fund balances and the level of the RRP, since drawdowns there determine how much new paper private buyers must take down. The follow-ons are the subsequent coupon auctions of the week and any revision to issuance estimates at the next refunding, which is where bill demand conditions have typically shown up as a policy variable rather than just a pricing one.