Econoday Report: 52-Week Bill Auction July 27, 2010

2010 Economic Calendar

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52-Week Bill Auction

Released on 7/27/2010 11:30:00 AM For 7/27/2010 11:30:00 AM

Auction Results
52-Week Bill Rate	0.295 %
Bid/Cover	3.94
Total Amount	$25.0 B

Highlights
Coverage for the 52-week auction dipped to 3.94 from a strong 4.19 bid-to-cover ratio the previous week. But demand still bumped the high rate down to 0.295 percent from 0.320 percent the prior week.

Definition
Treasury bills are sold at public auctions every week. The 12-month bill is also known as the 52-week bill. 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. Six-month bills are announced on Thursday for auction the following Monday and issued (settled) on Thursday. If a Monday is a banking holiday, the bills are auctioned on Tuesday. (Department of the Treasury) Why Investors Care

Data Source: Haver Analytics