monday monday, page-139

Auction results for 3month and 6 month US T-bills

3-Month Bill Auction Results
Demand for the weekly 3- and 6-month bill auctions continues to be very strong. Despite very large auction sizes, coverage for both auctions was over 3.60. Low bid for the 3-month bill was once again zero.
[An amount of US dollar here being used as a carry trade without question]
0.04% ave yield for 3 months?
[FYI - Aust uses 90 day bond yields to set interest rates]

6-Month Bill Auction Results
0.16% ave yield for 6 months?

The US seems to use the 3 and 6 month Tbills as an interest rate indicator.

This means a healthy portion of a combined $61Bn is being floated around within/between markets on zero interest for the next 3-6 months (on top of the last periods results). Free billions essentially.

Thankfully yields on the 30 year Tbills are staying up to avoid pressure on the longer term. These might explain the lack of strength in the USD rally, if nothing comes of it.

This as well as the news due out today (US Tuesday) -
1year bill auction, and the Housing market index.

If both of these today are in the negative then the gold rush kicks up a gear IMO.

rgds,
pw