HALISTER1: 4-Wk Bill Provides Much-Needed Supply in Thin Markets: Jefferies

4-Wk Bill Provides Much-Needed Supply in Thin Markets: Jefferies

(Bloomberg) -- Auction of $40b bills drew “strong, aggressive interest” from buyside because issue crosses both quarter-end and Oct. 14 implementation deadline for SEC’s money market reforms, Jefferies strategist Thomas Simons said in note.
  • Investors were willing to bid 9bp through the offering rate on the Fed’s O/N RRP facility given limited supply
  • Also, liquidity in front end is “extremely poor at the moment”
  • NOTE: Treasury sold $40b 4-week bills at 16bp vs 17.5bp 11:30am WI
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Thomas Simons (Jefferies LLC)

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