The U.S. Treasury sold $50 billion of four-week bills, kicking off what's forecast to be the largest month of short-term debt sales in seven years, after issuance shrank before the deadline to reach a compromise on the U.S. debt ceiling.
The $225 billion of bills expected to be sold this month is the most since the Treasury stepped up issuance during the financial crisis to help bail out banks as demand for the safest assets surged. Tuesday's sale is the biggest since December 2014.
The $50 billion of four-week notes sold at a rate of 0.07 percent, as investors submitted bids amounting to 3.46 times the amount of debt issued, a measure known as the bid-to-cover ratio. The supply comes as regulations designed to protect money-market mutual fund investors from unforeseen losses are pushing more asset managers into U.S. government securities.
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