The US Treasury’s 6-month bill auction on July 27 posted a higher stop-out yield compared to the previous auction, with a bid-to-cover ratio above 2.0x. 6-month Treasury yields hovered around 4.08% as of July 24, reflecting investors pricing in slower-than-expected rate cuts. A bid-to-cover ratio above 2.0x means that for every dollar of bills on offer, more than two dollars in bids were received, indicating robust demand for short-duration US government paper. The smaller percentage of awards at the stop-out rate signals genuine competitive interest rather than tepid participation. With yields above 4%, these bills create competition for Bitcoin, Ethereum, and other speculative assets.
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