Part 5/10:
The Treasury Department has recently made reductions in bill offerings, cutting back on the supply of 4-week and 8-week bills. Despite the diminishing supply, the demand during the T-bill auctions was unprecedented. Although the yields across both auctions fell — indicating a decline in expected future interest rates — the sheer number of bids for the 8-week bills soared, suggesting a growing appetite for safe-haven assets amid economic uncertainty.
The situation was further compounded by a plunge in yields that coincided with heightened interest in these bills. For the auction, bids increased significantly, with a bid-to-cover ratio that reached almost 3.5, a figure that reflects strong market confidence in Treasury bills as secure investment vehicles.