US to sell USD 85bln of 8-week bills (prev. 75bln) and USD 90bln of 4-week bills (prev. 80bln) on May 7th, and USD 69bln of 17-week bills (prev. 69bln) on May 6th; all to settle May 12th

The US Treasury's decision to increase the issuance of both 8-week and 4-week bills signals a proactive approach to managing liquidity, likely in response to funding needs or cash flow management. This larger supply could lead to higher yields, affecting not only the fixed income market but also creating potential knock-on effects for the USD and broader risk sentiment. Traders should monitor reactions in the bond market and consider how this might influence short-term interest rates and the USD's strength.