The U.S. government completed its sale of $29 billion worth of 6-month bills Monday afternoon. The government has increased the size of the offering by about $2.5 billion in the early months of 2009 as it raises funds to deal with the recession.
The auction drew a yield of 0.420 percent while experiencing weaker than usual demand, with the bid-to-cover ratio coming in at a level of 2.88. The previous auction for comparable notes took place last week totaling $29.0 drawing a yield of 0.390 percent, posting a demand of 3.05.
The government also auctioned $31 worth of 3-month bills on the day.
In the markets, treasuries have moved well off of their highs on day but remain in positive territory. The yield on the benchmark ten-year note is down to 2.735 percent, a drop of 2.6 basis points on the day.
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