April 2010 Treasury Auction Tally

Treasury Auction Schedule and Result for the Week of April 5, 2010 (Updated with Results)

The US Treasury Department will auction the following Treasury securities this week.

Monday April 5, 2010

• 13-week bill: $28 billion (same as last week)
  
  Primary Dealer: $13.91 billion
  Indirect Bidder: $9.74 billion
  Indirect Bidder Percentage: 34.8% (last week 48.2%)
  Direct Bidder: $3.06 billion (10.9%; last week $2.10 billion)
  Bid to Cover Ratio: 3.60 (last week 4.16)
  Investment Rate: 0.178% (last week 0.147%)
  High Rate: 0.175% (allotted at high: 30.70%)
  
  
• 26-week bill: $29 billion (same as last week)
  
  Primary Dealer: $9.91 billion
  Indirect Bidder: $12.56 billion
  Indirect Bidder Percentage: 43.3% (last week 51.3%)
  Direct Bidder: $5.36 billion (18.5%; last week $2.12 billion)
  Bid to Cover Ratio: 3.63 (last week 3.90)
  Investment Rate: 0.269% (last week 0.244%)
  High Rate: 0.265% (allotted at high: 39.79%)

Tuesday April 6, 2010

• 4-week bill: $34 billion ($3 billion more than last week)
  
  Primary Dealer: $18.76 billion
  Indirect Bidder: $9.36 billion
  Indirect Bidder Percentage: 27.5% (last week 26.4%)
  Direct Bidder: $5.60 billion (16.5%; last week $5.36 billion)
  Bid to Cover Ratio: 3.56 (last week 3.58)
  Investment Rate: 0.162% (last week 0.152%)
  High Rate: 0.160% (allotted at high: 76.03%)
  
  In addition, SOMA* purchased $5.94 billion 4-week bill.
  
  
• 52-week bill: $26 billion (same as last month)
  
  Primary Dealer: $11.10 billion
  Indirect Bidder: $10.57 billion
  Indirect Bidder Percentage: 40.7% (last month 43%)
  Direct Bidder: $4.13 billion (15.9%; last month $2.87 billion)
  Bid to Cover Ratio: 3.66 (last month 4.00)
  Investment Rate: 0.494% (last month 0.381%)
  High Rate: 0.485% (allotted at high: 1.56%)
  
  
• 3-year note: $40 billion (same as last month)
  
  Primary Dealer: $14.78 billion
  Indirect Bidder: $20.87 billion
  Indirect Bidder Percentage: 52.2% (last month 51.6%)
  Direct Bidder: $4.29 billion (10.7%; last month $4.12 billion)
  Bid to Cover Ratio: 3.10 (last month 3.13)
  Interest Rate: 1.750% (last month 1.375%)
  High Yield: 1.776% (allotted at high: 44.71%)

In addition, SOMA purchased $2.93 billion 3-year note.

Wednesday April 7,2010

• 56-day CMB under SFP* for the Federal Reserve: $25 billion
  
  Primary Dealer: $14.78 billion
  Indirect Bidder: $4.80 billion
  Indirect Bidder Percentage: 19.2% (last week 22.1%)
  Direct Bidder: $5.43 billion (21.7%; last week $3.34B)
  Bid to Cover Ratio: 3.85 (last week 3.61)
  Investment Rate: 0.167% (last week 0.162%)
  High Rate: 0.165% (allotted at high: 43.62%; last week high rate 0.160%)
  
  
• 9-year 10-month note (reopening): $21 billion (same as last reopening; total after auction $67 billion)
  
  Primary Dealer: $8.48 billion
  Indirect Bidder: $9.01 billion
  Indirect Bidder Percentage: 42.9% (last month 34.9%; original issue 32.9%)
  Direct Bidder: $3.41 billion (16.2%; last month $3.65B; original issue $3.22B)
  Bid to Cover Ratio: 3.72 (last month 3.45; original issue 2.67)
  Interest Rate: 3.625%
  High Yield: 3.900% (allotted at high: 99.62%) (last month high yield 3.735%; original issue high yield 3.692%)
  
  In addition, SOMA purchased $1.54 billion 9-year 10-month note.

Thursday April 8, 2010

• 29-year 10-month bond (reopening): $13 billion (same as last reopening; total after auction $42 billion)
  
  Primary Dealer: $4.89 billion
  Indirect Bidder: $4.78 billion
  Indirect Bidder Percentage: 36.8% (1st reopening 23.8%; original issue 28.5%)
  Direct Bidder: $3.31 billion (25.5%; 1st reopening 29.6%; original issue 24.1%)
  Bid to Cover Ratio: 2.73 (1st reopening 2.89; original issue 2.36)
  Interest Rate: 4.625%
  High Yield: 4.770% (allotted at high: 30.96%) (high yield 1st reopening 4.679%; original issue 4.720%)
  
  In addition, SOMA purchased $952 million 29-year 10-month bond.
  

Total for the week: $216 billion

• Bills: $142 billion
  Notes and bonds: $74 billion

Total for April 2010 so far: $237 billion

• Bills: $163 billion
• Notes and bonds: $74 billion

Additional purchase by SOMA in April so far: $11.362 billion

• Bills: $5.94 billion
• Notes and bonds: $5.422 billion
  

Auctions of Cash Management Bills in 2010 (Updated)

Auctions of CMB (Cash Management Bills) under SFP (Supplemental Financing Program) are quietly increasing in frequency and in amounts raised.

CMB is a short-term security sold by the U.S. Department of the Treasury. The maturity on a CMB can range from a few days to six months. The money raised through these issues is used by the Treasury to meet any temporary shortfalls. CMBs tend to pay higher yields than bills with fixed maturities, but their shorter maturities lead to lower overall interest expense.

But there is another type of CMB since October 2008 (SFP, or Supplemental Financing Program) , whose proceeds are used exclusively by the Federal Reserve for its various lending and credit programs to support the financial industry and also to support its own balance sheet.

Auctions of CMB under SFP have increased recently, after a relatively quiet period since November last year.

Regular CMB issues in 2010 so far:

• March 30: 18-day CMB, $17 billion
• April 1: 10-day CMB, $21 billion

CMB issues under SFP in 2010 so far:

• February 3: 21-day CMB, $5 billion
  
• February 24: 56-day CMB, $25 billion
  
• March 3: 56-day CMB, $25 billion
• March 10: 56-day CMB, $25 billion
• March 17: 56-day CMB, $25 billion
• March 24: 56-day CMB, $25 billion
• March 31: 56-day CMB, $25 billion
• April 7: 56-day CMB, $25 billion (scheduled)
  

There is no announcement either from Treasury or from the Federal Reserve as to how the money thus raised is being spent, and that has been the case ever since the Supplemental Financing Program started in October 2008.