(Adds background, graphic)
NEW YORK, Aug 7 (Reuters) - The U.S. Treasury Department on Tuesday sold a record amount of 1-month bills, totaling $70 billion, at the lowest bid-to-cover ratio in five weeks, Treasury data showed.
This gauge of overall auction demand for the latest 1-month T-bill issue was 2.65. This was the weakest reading since 2.45 set at a one-month bill sale held on July 2 which was the lowest since July 29, 2008.
The Treasury paid dealers and investors an interest rate of 1.905 percent on the latest 1-month bill supply.
This was slightly below the 1.910 percent set last week, which was the highest interest rate at a 1-month bill auction since June 2008.
On Monday, the Treasury sold $51 billion of 3-month bills and $45 billion of 6-month T-bills to soft demand.
The government is expected to collect $41 billion in new cash from this week’s T-bill auctions.
Reporting by Richard Leong; editing by Jonathan Oatis