T-Bill Commentary from BB

1m/3m T-Bill Curve Flirts With Zero Amid Debt-Ceiling Concerns
2018-01-31 14:05:47.715 GMT

By Alexandra Harris
(Bloomberg) — The spread between 1- and 3-month Treasury
bills touched -1.93bp as anxiety surrounding the debt-ceiling
deadline increased; spread currently at ~0.873bp.
* Treasury reiterated in its refunding statement it expects to
be able to fund the government through the end of February
* Increases in coupon supply will “eat into available borrowing
authority and will further limit bill issuance until the debt
ceiling is raised,” Jefferies economist Thomas Simons says in
note
* Yields on Treasury bills maturing March 1 rose by 1.1bp to
1.439%, while March 8 securities were little changed at 1.369%;
the rate on March 15 maturities was little changed at 1.339%

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