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T-Bills, 3-Day, June 2-5, 2023

This isn't a joke.

Treasury is offering 3-day T-Bills with Auction on June 1, issue/settle June 2, maturity June 5 (drop-dead date for debt-ceiling).


  • Sheesh, that's unreal.

    One almost wants to throw some $$$ into it b/c the interest rate is likely going to be .... big?
  • edited May 31
    Out of curiosity, I checked 2 brokerage platforms and they show only 4-wk and 8-wk T-Bills for Auction on 6/1/23 (settle 6/6/23).
    Unclear who this 3-day T-bill is for. The announcement mentions both noncompetitive (for retail) and competitive (institutional) buyers.

    Edit/Add: In the secondary market, I see T-Bills maturing on 6/6/23 for 99.92882-99.9303, or about 7 bps discount.
  • edited May 31
    A "cash management" bill offering: yup, to put it mildly. Treasury must need the $25B to bridge to the June 5 x-day.

    It's been added to the TD Upcoming Auctions page.

    Treasury may need more accounting employees before the next debt ceiling fiasco.
  • Well supposedly Treasury 'only' had like $45B on-hand the other day, so they probably need all the cash they can get to meet daily outflows/payments.
  • I saw somewhere they were frantically trying to get every department and bureau to tell them exactly how much they had in obligations to pay out over the very short term. Maybe their earlier estimates fell short that much when they put all that info together. They've got to have all the info they need on payroll, since they issue the checks, but maybe not on things like contract payments.
  • edited June 1
    I checked this morning too, those 3-day T-Bills are NOT available at Schwab & Vanguard brokerages. I thought I might help out Uncle Sam for 3 days at an indicated rate of about 9% annualized (based on quotes in the secondary market). But I cannot.
  • @ yogibearbull Would 9% on $100k for 3 days be about $74 ?
  • Well, about 7 bps discount for 3 days (as of yesterday quote in the secondary market) isn't bad even for coffee money.
  • I will reinvest more 3mo and 6 mo T bills next week as several of them matured earlier this month. As of 5/31/23, 2 yr and 10 yr notes are yielding 4.4% and 3.6%, respectively. More attractive than last year.
  • 1y Ts are still fairly attractive at a little over 5% yld, but no telling if they'll last at ~ that level till the next auction on the 13th.
  • edited June 1
    Now the Treasury has announced 1-day T-Bill ($15 billion; reopening) to be auctioned on 6/2/23, issued/settled on 6/5/23, maturing on 6/6/23. May be someone can remember if this was also done during the past the debt-ceiling crises when it came so close. (BTW, I am on Treasury email alert list for auction announcements)
  • edited June 1
    Wow. They are really fine-tuning it.
  • edited June 1
    3-day T-Bill auction rate today was "only" 6.256%. Bids were 2.38x what the Treasury needed ($25 billion). But then the debt-ceiling deal cleared the House, and it is expected to go through the Senate today or tomorrow (after 2-3 Senators' objections/amendments are heard and rejected).
  • This 1-day T-bill is a re-opening of the February 07, 2023 4-month, since that's shown as its OID?
  • edited June 1
    NYT reports this: "The Treasury announced on Thursday that it would delay auctions of three-month and six-month “bills” — short-term debt that the government no longer has room to take on until the borrowing cap is suspended."

    Presumably that means the 6/5 auctions.

    Debt Limit Fight Moves to the Senate ...
  • Interesting. Fidelity took them off their list of available Treasuries and TD has killed the CUSIP links on the Upcoming Auctions page. If Treasury can't make the call well before 10a on Monday, it might not be all that successful. Depends on the Senate.
  • Could this be a way for Treasury to manage debt ceiling political tantrums should they occur? Glad they didn't.
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