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Nearly 12% on 34-day Treasury Bill Auction

Deepak Shenoy1 min read
Quick Facts
What is "Nearly 12% on 34-day Treasury Bill Auction" about?
What category is this article in?
Fixed Income
Who wrote this article?
Deepak Shenoy, Capitalmind's research team.
When was this article published?
Published 13 August 2013.
How long does this article take to read?
1 min read

Following up from yesterday’s 35-day Cash Management Bill auction (which went at 11.70%), today’s 34-day CMB auction was cut off at 11.94%.

This is effectively telling you that short term rates are now around 12%. We’re seeing commercial paper already trade above 12%, and many bank CDs are going at 11.5% to 12% now.

It will still take a couple weeks for this to mean higher deposit and lending rates.