2018 Economic Calendar
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52-Week Bill Auction  
Released On 1/2/2018 1:00:00 PM For 1/2/2018 1:00:00 PM
Auction Results
Total Amount$20 B 
Bid/Cover2.91 
52-Week Bill Rate1.780% 

Highlights
Results are soft for the monthly 52-week T-bill auction, where coverage, at 2.91, was the lowest since May. End investor demand was also the weakest since May, with non-dealers taking down just 36 percent of the $20 billion offering. The 1.780 percent awarded high discount rate was 13 basis points above last month's rate.

Definition
Treasury bills are sold at public auctions every week. The 12-month bill is also known as the 52-week bill. Competitive bids at these auctions determine the interest rate paid on each issue. A group of securities dealers, known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold the bills, resell the bills to their clients or trade them with other securities firms. Typically, the New York Fed approves about 20 securities firms to be primary dealers but that number dropped sharply during the 2008 financial crisis as some were merged into other firms or went bankrupt. The Fed has been rebuilding that number regularly and the latest list can be found here. Since these are public auctions, the Treasury must announce the size, date and time of the auction every week. 52-week bills are announced on Thursday for auction the following Monday and issued (settled) on Thursday. If a Monday is a banking holiday, the bills are auctioned on Tuesday. (Department of the Treasury)  Why Investors Care
 
[Chart]

Data Source: Haver Analytics
 
[Chart]
The yield on the 52-week Treasury bill is typically somewhat higher than the federal funds rate except when markets expect upward or downward changes in monetary policy through the fed funds rate. The chart depicts the high discount rate awarded at 52-week T-bill auctions since January 2012 up to and including the latest auction results.
Data Source: Haver Analytics
 

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