US sells USD 105bln of 4-wk bills at high-rate 3.630%, B/C 2.86x; sells USD 95bln of 8-wk bills at high-rate 3.635%, B/C 2.87x

The US Treasury's auction results show strong demand for both 4-week and 8-week bills, indicated by bid-to-cover ratios above 2.8x.

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US sells USD 105bln of 4-wk bills at high-rate 3.630%, B/C 2.86x; sells USD 95bln of 8-wk bills at high-rate 3.635%, B/C 2.87x

European Closes: Euro Stoxx 50 -0.55% at 5,901, Dax 40 -2.13% at 24,293, FTSE 100 +0.17% at 10,172, CAC 40 +0.06% at 8,071, FTSE MIB -0.14% at 45,076, IBEX 35 -0.17% at 17,577, PSI -0.22% at 8,644, SMI +0.79% at 13,147, AEX -0.02% at 997

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Context

The high yields at 3.630% and 3.635%, respectively, suggest that the market is pricing in a higher rate environment, reflecting investor appetite for short-term securities amidst ongoing monetary policy dynamics. This strong demand could signal confidence in the Treasury's issuance strategy and may influence short-term rate expectations going forward.

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