PIMCO Enhanced Short Maturity Active ETF
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.
A closer look at the difference between ETFs and mutual funds
Before moving to inverse and leveraged ETFs in the next part of this series, we’d like to quickly discuss the differences between ETFs and mutual funds.
Must-know: Why demand for 6-month T-bills continues to grow
Demand for six-month Treasury bills has seen a continuous uptrend over the past four weeks, as we’ve seen in the rising bid-to-cover ratio.
Why did the 4-week rally in 6-month T-bill demand end last week?
This week saw the end of a four-week rally for six-month T-bills, as seen the in bid-to-cover ratio falling for the first time since March 17.
Why the Fed Has Initiated Balance Sheet Normalization
Atlanta Federal Reserve president and CEO, Raphael Bostic, recently spoke at a conference about the Fed’s balance sheet normalization program.
Why FOMC Members Aren’t Worried about the Market Reaction to Balance Sheet Trimming
The September meeting minutes indicated that the members underscored that the reduction in the Fed’s balance sheet would be gradual.
Why FOMC’s John Williams Sees No Impact of Balance Sheet Unwinding on Markets
In the long run, Williams said it would be difficult to predict how markets would react to the Fed’s balance sheet unwinding program.
Why Is FOMC Starting to Unwind Its Balance Sheet without a Target?
In the September 20 meeting, FOMC (US Federal Open Market Committee) finally announced the start date of its balance sheet unwinding program.
Markets Are Confident on Fed Balance Sheet Trimming Announcement
In its efforts to revive the US economy from the Great Recession, the US Fed started purchasing US government-backed securities in 2008.
Could the Fed Announce Balance Sheet Shrinking in September?
The Fed, in its efforts to normalize policy, announced that it is starting the balance sheet unwinding program soon.
The Fed Could Announce Balance Sheet Reduction Plan in September
In its June meeting, FOMC (Federal Open Market Committee) members detailed plans to shrink the $4.5 trillion balance sheet.
Will the US Balance Sheet Unwind Affect the Markets?
After the July FOMC meeting statement was released, market participants came to believe that the Fed would begin the process of balance sheet normalization soon.
Why FOMC Members Were Divided about Balance Sheet Shrinking
The FOMC June meeting minutes that were released on July 5, 2017, indicated that the FOMC members were divided over when to begin shrinking the Fed’s bloated balance sheet.
Fed Chair Yellen Warns about Its $4.5 Trillion Balance Sheet Unwinding
In her post-meeting press conference, Janet Yellen warned that the Fed could implement its balance sheet unwinding process soon if the economy continues to perform as expected.
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 US Treasury ups the T-bills auction size by 12%
Last week’s T-bill auctions had a mixed trend for discount rates. While the six-month rates were unchanged, rates increased for the three-month and one-month maturities. A higher discount rate for the T-bills would imply higher demand at the higher discount rate at the auction.
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.
Why the floating notes remained in demand despite higher issuance
After a drop during February 4 auction, the demand for one-year T-bill recovered over next two auctions. However, the April 29 auction saw the demand diminishing again.