The Treasury auctioned $44 billion in T-bills and CMBs on Tuesday, raising $13 billion in new cash. The combined indirect bid was somewhat less than the indirect bid at last week’s 4 week bill auction, but still at high levels. The panic flow of cash out of other credit instruments into Treasuries has leveled off. That could lead to a problem in the Treasury market and other markets because Treasury supply is ballooning at a ferocious rate. The $44 billion total size of today’s auction was $19 billion more than the Treasury Borrowing Advisory committee’s estimate for today, made on January 31, not even two months ago. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
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