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IPFS News Link • Stock Market

3 And 6 Month Bill Bids-To-Cover Plunge To Lowest In A Decade Amid Fleeing Demand

• by Tyler Durden

), the same can hardly be said for the short-end of the market, where moments ago we saw what happens to auction demand in a time of rapidly rising rates and rising supply.

As shown in the chart below, while the yield on 3 Month Bills auctioned off today came in largely as expected at 2.010%, the demand did not, and after dropping to a cycle low Bid to Cover of 2.62 last month, today's 3 Month (or 12 week) auction suffered from one of the lowest demands on record, tumbling to just 2.54 from 2.87 last week, with $129.7BN in bids tendered for $51BN in paper, down sharply from $146.2BN on July 30. In context, this was the lowest Bid To Cover in the past ten years, and one would have to go back all the way to the post-Lehman days of 2008 to find a lower BTC.