Advertising Disclosure
  1. Home
  2. Community
  3. Ask
  4. 3-Day Treasury Offering?

3-Day Treasury Offering?

carolynwo
  |     |   50 posts since 2017

What is a 3-day Treasury offering? Just saw this on upcoming auctions and at Fidelity

  Post an answer
3


Answers
FrankSavage
  |     |   45 posts since 2017
FOR IMMEDIATE RELEASE: CONTACT: Treasury Auctions
May 30, 2023 202-504-3550
TREASURY ANNOUNCES BILL AUCTIONS FOR ISSUANCE ON JUNE 6 AND POSSIBLE CMBS
The Treasury bill auctions announced today would represent a net paydown of marketable debt when the securities are issued on June 6. In addition to the 4-, 8-, and 17-week bill auctions announced today, Treasury anticipates that issuance of several cash management bills (CMBs) will be necessary in the coming days. Treasury has enough headroom under the current debt limit to issue all of these securities. However, the cash raised by the issuance of these securities may be insufficient to satisfy all of the government's obligations if Congress has not raised or suspended the debt ceiling by June 5.
Reply
4
txFish1
  |     |   476 posts since 2023
@FrankSavage Do you know if there is a way to differentiate CMB's from regular issued T-bills such as the way they are described or maybe something in the CUSIP number?
Reply
2
FrankSavage
  |     |   45 posts since 2017
Not that I am aware of other than searching on the CUSIP and checking the maturity date. It looks just like every other T-Bill because in essence it is a T-Bill, just with non-scheduled issuance and maturities.
Reply
1
MAKNYC
  |     |   323 posts since 2015
I am not aware of any formulaic methods in CUSIP creation for. CMB vs. standard bills. Obviously maturity dates would be one flag as standard bills mature on a schedule, whereas CMB can be off the run dates. You can see all historical CMB issuances summarized just like any other securities on the savingsbonds.gov results page:

https://www.savingsbonds.gov/auctions/announcements-data-results/announcement-results-press-releases...

On the bottom click on the expansion arrow next to CMB to see all issuances for any given calendar year.
Reply
3
111
  |     |   672 posts since 2019
I've never seen it either (although I'm somewhat new to Treasuries). A guess - since Yellin changed her story from "gubment will go bankrupt on 6/1/23 without action from Congress" to "sorry, meant gubment will go bankrupt 6/5/23 without said action" - it's a last-minute attempt to generate some income from those who are afraid of not being paid.
Reply
3
RichardW
  |     |   810 posts since 2019
111, I recently sent you a PM regarding the Vanguard Federal Money Market Fund.
Reply
1
CTM
  |     |   179 posts since 2010
The auction had an investment yield of 6.25%!

If a three day Treasury was too long for you to hold, there is an auction of 1 day paper on 06/02/23.
Reply
3
SYC
  |     |   312 posts since 2017
This 1-Day T-bill appeared just this morning. Could there be more of these "day-loan" T-bills in the coming days/weeks due to the debt limit not raised in time?
Reply
4
txFish1
  |     |   476 posts since 2023
Just saw this on Fidelity as well. Auctions on 6-1, settles on 6-2 and matures on 6-5. Never seen one with this short of a maturity except on the secondary market offerings.
Reply
2
carolynwo
  |     |   50 posts since 2017
Hardly seems worth the effort!
Reply
1
w00d00w
  |     |   360 posts since 2012
these sort of offerings less than 10 days seem like they could be of interest to money market funds. perhaps there will be a short term bump in those funds' yields as a result.
Reply
2


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.