August 7, 2018 / 3:59 PM / 3 months ago

UPDATE 1-Record U.S. 1-month bill supply sold at lower demand

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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

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