US Treasury bill yields for both 6-month and 3-month maturities approached the 4% level at the August 10 auction, with the 6-month bill clearing at 3.855% and the 3-month bill at 3.750%. Bid-to-cover ratios increased compared to prior weeks, signaling strong investor appetite for short-term government debt. In secondary markets, 3-month bills traded around 3.81% while 6-month bills hovered near 3.98%, approaching a psychologically significant level. Money market funds, among the largest buyers with trillions in assets under management, provided a reliable demand floor for these auctions. This solid demand helped push yields modestly lower despite robust competition for these zero-coupon securities.
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