2010 Economic Calendar
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4-Week Bill Auction
Released on 7/27/2010 11:30:00 AM For 7/27/2010 11:30:00 AM
Auction Results
4-Week Bill Treasury Rate0.155 % 
Bid/Cover4.30 
Total Amount$31.0 B 

Highlights
Coverage for the 4-week auction slipped only marginally to 4.30 from an extremely strong 4.42 bid-to-cover ratio the previous week and the high rate was unchanged at 0.155 percent.

Definition
Treasury bills are sold at public auctions every week. Competitive bids at these auctions determine the interest rate paid on each issue. A group of 17 securities dealers (as of June 18, 2009), known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold the bills, resell the bills to their clients or trade them with other securities firms. Since these are public auctions, the Treasury must announce the size, date and time of the auction every week. Four-week bills are announced on Monday for a Tuesday auction and are issued (settled) on Thursday of the same week. If a Monday is a banking holiday, the bills are auctioned on Wednesday. (Department of the Treasury)  Why Investors Care
 
[Chart]
Data Source: Haver Analytics
 
[Chart] The 4-week note was instituted to replace the necessity for sporadic cash management bills. This weekly auction is more predictable for investors. Predictability in the Treasury market is a highly rate feature that promotes demand for these bills. The 4-week bill rate depicted in this chart represents the high discount rate from the Treasury's weekly auction on Tuesdays. It only represents one moment in time, and is not an average of daily numbers. The date on the chart is associated with the issue (or settlement) date of the Treasury security, which is on the Thursday of the week that the security is auctioned. Our grid tables show the auction date of the security, which is usually on Tuesdays.
Data Source: Haver Analytics
 
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