SPDR® Barclays 1-3 Month T-Bill ETF
The demand for 4-week Treasury bills remained subdued last week
A considerable amount of $35 billion was offered for the weekly four-week T-bills auctioned on Tuesday, March 4, 2014.
Must-know trends that affect pricing at T-bill auctions
The U.S. Treasury holds weekly auctions for the four-week, 13-week, and 26-week Treasury bills. But its auctions for 52-week Treasury bills (SHY) take place only once a month.
Must-know: Analyzing the 6-month Treasury bills auction
The share of primary dealer bids rose slightly. An increase in the percentage of primary dealer bids is a sign of weaker fundamental market demand.
Understanding the Fed’s yield curve can impact your bond returns
The yield curve is a graph that plots interest rates at different maturities with the same credit quality that can range from a month to 30 years or more.
Must know: The trading markets available to the investors
Retail investors mostly prefer the secondary market for buying Treasuries as it eliminates a lot of paper work and other administrative hassles.
Why the bid/cover ratio for the 6-month Treasury bills declined
Despite an increase in the six-month Treasury interest rates, last week’s coverage at 4.46x was lower than the previous week’s 4.76x bid/cover ratio.
Why T-Bill auctions saw strong demand though rates stayed low
The 26-week T-bill was also auctioned on Monday, March 10. The T-bill rate for the auction came in at 0.08%, unchanged from last week’s auction.
Why was the short-term T-Bills auction strong last week?
The short-term securities that have already been auctioned last week include four-week, 13-week, and 26-week T-Bills.
Why key rate duration can impact your fixed income portfolio
Duration measures a portfolio’s sensitivity to parallel shifts in the yield curve. However, parallel shifts in the yield curve rarely, if ever, occur.
Recommendation: You can learn from the yield curve of 1989–1990
While the yield curve is normally upward-sloping, it might flatten excessively in certain special conditions. “Flattening” refers to the contraction of differences in yields across maturities.
An investor’s must-know guide to US Treasury auctions
The U.S. Treasury Department issues Treasury securities of varying maturities to finance government debt. The yield on these securities is determined through a public auction process
Why investors should follow shifts and twists in the yield curve
Yields on bonds don’t remain constant. When they change by the same magnitude across maturities, we call the change a “parallel shift.”
Key takeaways: Why is the yield curve normally upward-sloping?
In normal conditions, the yield curve is upward-sloping. As bonds pay only interest (the coupon) until maturity and pay face value at maturity, investors take longer to recover their principal.
Knowing the Treasury discount rate and yields before investing
Investors can take an informed decision by knowing the rate of return on their investment.
Why Does a Flat Yield Curve Fail the “Spread” Model?
Let’s see why a flat yield curve fails the spread model. Bill Gross recognizes the harm that low-interest rates cause to the spread model of some businesses.
Indirect Bidders Storm 26-Week Treasury Bills Auction on April 13
After two weeks of staying away, indirect bidders, which include central banks, came back to buy 26-week Treasury bills. It was a rare occurrence.
The bid-to-cover ratio rose at the 13-week T-bills auction
The US Department of the Treasury auctioned 13-week, or three-month, Treasury bills (BIL) (MINT), or T-bills, worth $24 billion on January 12.
Why the demand for four-week Treasury bills fell in the past week
The bid-to-cover ratio compares the number of bids received in a Treasury auction with the number of bids accepted (or the amount of securities issued).
Analyzing the key trends at recent Treasury bill auctions
Last week, the week ended June 13, the U.S. Treasury held weekly auctions for four-week, 13-week, and 26-week Treasury bills for $30 billion, $25 billion, and $23 billion, respectively.
Analyzing demand for 13-, 26-, and 52-week T-bills last week
While four-week T-bills saw a drop in demand in the last week (as we discussed in the previous part of this series), three-month, six-month, and one-year T-bills saw an increase in demand.