In my weekend article, I estimated a yield of 3.65% – 3.80% for the upcoming 6-month T-Bills auction.
The auction results are out at 3.74% cut off yield, right smack in the middle of my protected range.
These are actually pretty strong results (for investors looking for yield).
Because the demand for T-Bills jumped quite noticeably in this auction, and auction supply fell quite a bit – and yet yields stabilised around the 3.7% – 3.8% range.
Let’s dive into the numbers.
6-month T-Bills yields stabilise at 3.74% (20 June 2024 Auction Results)
The cut-off yield for the latest T-Bills auction is set out below.
This round of 6-month T-Bills is issued at 3.74% yield (which is only down slightly from the 3.76% we saw in the previous auction).
T-Bills yields since Jan 2023 are charted in graph form below.
You can see how with the past 2 auctions, T-Bills have gone back into the 3.7 – 3.8% range.
This makes the T-Bills auction in late May where yields fell to 3.65% look like an outlier (for now)
Demand for T-Bills rises to $15.5 billion (vs $14.2 billion the last auction)
Demand for T-Bills this auction came in at $15.5 billion.
This is a 9.2% jump in demand vs the $14.2 billion we saw in the previous auction.
You can see this charted below – demand for T-Bills has recovered to close to record highs.
Some of you have suggested than when there is an auction with a high cut-off yield (like the last auction where T-Bills closed at 3.76%).
We see higher demand the next auction.
There’s no way to confirm this conclusively, but indeed we do see a jump in demand this auction.
Auction amount for
