The US Treasury will auction $92 billion in 3-month bills on August 31, with settlement scheduled for September 3 after the Labor Day long weekend. This operation, whose size has been maintained since late June, temporarily drains liquidity from private markets into government coffers. Indicators from the last auction on August 24 show strong demand, with a high discount rate of 3.715%, an investment rate of 3.803%, and a bid-to-cover ratio of 3.08, up from 2.86 the prior week. The Treasury’s general account balance at the Federal Reserve stood near $940 billion in late August, providing the government with substantial flexibility. The $92 billion auction comes as Treasury Secretary Scott Bessent confirmed an expanded bond buyback program launching on September 10, creating a back-and-forth effect between liquidity withdrawn and injected into markets.
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