The latest T-Bills auction results are out! And for the first time in a while, there were no surprises. In my weekend article I wrote that estimated fair value for the T-Bills should be somewhere from 4.2% – 4.3%. Well – final cut-off yield came in at 4.28%, which was squarely within that range:

21 December 2022 T-Bills Auction Results – 4.28% yield, Full Allotment for Non-Competitive Bids

Diving into the numbers. Final cutoff yield is 4.28%. So everybody gets T-Bills at 4.28% regardless of whether you applied competitive or non-competitive bids. A $4.4 billion issue size received $11.8 billion in applications, which was 2.68 times subscribed.

Allotment Results for T-Bills

Non-competitive allotments see 100% allotment. Competitive Applications at cut-off allotment see 80% allotment. Practically speaking, this means that: If you applied non-competitive, you...