US sells USD 105bln of 4-wk bills at a high rate of 3.630%, B/C 3.63x; sells USD 95bln of 8-wk bills at a high rate of 3.630%, B/C 2.88x
The recent auction results for US treasury bills indicate strong demand, particularly with bid-to-cover ratios above typical benchmarks.
A rally in corporate bonds has pushed the reward for taking extra credit risk to historic lows, prompting warnings from some investors of “bubble-like behaviour” in parts of the market, reports FT
US customs tells CNBC that for fiscal 2025 it has identified 27,479 customs bond “insufficiencies” valued at nearly USD 3.6bln, double the 2019 level when insufficiencies first soared due to Trump’s first-term trade policies, via CNBC
US sells USD 105bln of 4-wk bills at a high rate of 3.630%, B/C 3.63x; sells USD 95bln of 8-wk bills at a high rate of 3.630%, B/C 2.88x
The House is done voting for the week. Recess next week. DHS shuts down tomorrow night, Punchbowl reports
European Closes: Euro Stoxx 50 -0.27% at 6,019, Dax 40 -0.11% at 24,828, FTSE 100 -0.67% at 10,402, CAC 40 +0.33% at 8,341, FTSE MIB -0.62% at 46,223, IBEX 35 -0.82% at 17,897, PSI -0.49% at 9,026, SMI -0.21% at 13,543, AEX -2.02% at 989
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The stable high rate across both 4-week and 8-week bills suggests an environment where investors are seeking safe-haven assets, potentially reflecting concerns about economic growth or inflation expectations. This outcome could lead to upward pressure on short-end rates and impact the currency markets, particularly the USD.
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