Auction results for the latest round of T-Bills are out!
And sadly, they are tracking the downtrend in US interest rates.
Cut-off yields close at 3.85% (as compared to 3.99% the previous round).
Look under the surface though, and you’ll find that the T-Bills application amounts jumped drastically.
So a meaningful part of this drop in yields can probably be attributed to higher demand from investors.
Auction: BS23114A 6-Month T-bill Auction Results – 3.85% Cut-off yield
Cut-off yield for the 20 July T-Bills auction below.
Yields have come down to 3.85%, vs 3.99% for the previous auction.
This is charted in graph form below.
Viewed this way, it looks like the previous 3.99% auction might be the exception rather than the norm.
Latest 3.85% cut-off yield is very much in line with the range since March 2023, if you exclude the 6 July auction....
