$16 Billion 4-Week Bill Closes At 0.025%, Bid To Cover Surges To 5.5 As "Window Dressing" Thesis Is Refuted

"Tremendous amount of cash coming in" in the first Bill auction of the year (that's right, after the books closed). But wait, we thought that insane demand for ultra-short maturity Bills was only a function of end of year window dressing as asset managers had to park their money in Bills for LP demonstration purposes. You mean that's not the whole story? The closing high rate of 0.025%, and more indicatively, the 0.000% low, demonstrates that there still is no scarcity of demand for Bill. Most importantly, the Bid To Cover came in at a massive 5.5, compared to the 3.95 in the prior week (yes, the week when the window dressing excuse still made sense). Time to hire the Blackstone spin doctors again.

  • Primary dealers tender $67.678 billion, 77.05% of total comp, accepted on 6.680 billion, (42.41% of total) 9.87% hit ratio
  • Direct bidders at $8 billion, 9.12% of competitive tender, 4.81% hit ratio
  • Indirects take $8.7 billion of the competitives
  • Indirect bid-to-cover 1.4