United States 52-Week Bill Auction

Info

History

Chart

Impact:

Low

Next Release:

Date:

Period:

What Does It Measure?

The 52-week bill auction in the United States measures the government's short-term borrowing costs and investor demand for Treasury bills with a one-year maturity. The primary focus is on investor appetite for safe-haven assets, assessing the yield offered and the bid-to-cover ratio, which indicates the level of demand during the auction.

Frequency

This auction occurs weekly, typically on Mondays, and the results are finalized on the same day, providing timely insights into the government’s borrowing conditions.

Why Do Traders Care?

Traders pay close attention to the 52-week bill auction as it signals both demand for U.S. government debt and broader market sentiment regarding interest rates and economic stability. A strong auction result, with high demand and lower yields, can bolster the U.S. dollar and support equities, while weak results may raise concerns about credit risk and economic conditions.

What Is It Derived From?

The results of the 52-week bill auction are derived from bids submitted by primary dealers and other financial institutions through a competitive bidding process. The Treasury Department calculates the yield based on accepted bids, while the bid-to-cover ratio reflects total bids relative to the amount offered.

Description

The 52-week bill auction presents preliminary results right after the auction closes, offering initial insights into market conditions, while final figures may be more accurate and reflect any adjustments made post-issuance. The event is crucial for gauging short-term interest rate expectations and overall economic sentiment due to its direct impact on government financing.

Additional Notes

This auction serves as a coincident economic measure, offering insights into the current state of investor confidence and liquidity in financial markets. It relates to broader economic trends as shifts in demand for Treasury bills can indicate changing perceptions of risk in the broader economy.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bullish for USD, Bullish for Stocks. Lower than expected: Bearish for USD, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise