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The issuance of 89 billions impacts the market, making rolling position strategies valuable

The issuance of 89 billions impacts the market, making rolling position strategies valuable

汇通财经汇通财经2026/05/26 12:53
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⑴ The US Treasury announced on Tuesday that it will issue $89 billion in 3-month Treasury bills and $77 billion in 6-month Treasury bills, with the settlement date set for Thursday. ⑵ The current indicative rate for the 3-month Treasury bills is 3.60%, which is 1.25 basis points lower than last week's issuance; the 6-month indicative rate is 3.6375%, 1.25 basis points higher than last week. ⑶ The yield spread between 3-month and 6-month bills is 8 basis points, equivalent to about 0.61 basis points per week; the spread between 6-month and 1-year bills is 10 basis points, equivalent to about 0.38 basis points per week. ⑷ The forward rolling yield spread for 3-month bills is 1.6 basis points, and for 6-month bills is 0.8 basis points. Both have positive value and will attract bidders to participate. ⑸ The average results of the last six auctions show: the 3-month bills had a bid-to-cover ratio of 2.93, indirect bidders accounted for 58.7%, and dealers accounted for 34.2%; the 6-month bills had a bid-to-cover ratio of 2.91, indirect bidders accounted for 59.2%, and dealers accounted for 22.1%. ⑹ Bidders will submit separate quotes for sellers rolling positions and buyers with long-term holdings; both strategies have demand.
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