The bill's shorter maturity date of June 6 falls within the x-date of June 1, where the Treasury could default on its debt, scaring investors away. The bill's when-issued or expected rate was around 5.8% before the deadline, hitting a high of 6%. With the resulting high yield of 5.84%, this meant that investors demanded a premium of four basis points to hold the debt. Indirect bidders, which include foreign investors, took 42.1% of the bills, less than the 59.4% in the previous auction, and the 63.0% average, according to Action Economics (Reporting by Gertrude Chavez-Dreyfuss)
Messaging: rm://gertrude.chavez.reuters.com@reuters.net)) NEW YORK, May 4 (Reuters) - The U.S. Treasury's auction
of $50 billion in four-week bills on Thursday hit a record high
yield of 5.840%, higher than the expected rate at the bid
deadline, which suggested weak demand.
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