The Treasury Department yesterday auctioned $28 billion of four-week bills at a 3.680% high yield, a price of 99.724000. The coupon equivalent was 3.752%. The bid-to-cover ratio was 2.36. Tenders at the high rate were allotted 20.34%. The median yield was 3.550%. The low yield was 3.200%. Tenders totaled $66,042,497,000 and the Treasury accepted $28,000,147,000.
The department shifted funds that would have been invested in solar power to improve the island's electrical system.
"We're seeing some of the additional instability and other things come into play," said Dan Genter, CEO of Genter Capital Management.
The Internal Revenue Service is requesting documents from the Erie City Water Authority regarding a $36,320,000 issuance of Water Revenue Bonds Series D of 2019.
The revenue bonds, which would help finance a bigger convention center to replace the city's current facility, would be issued in the first half of 2026.
Bond yields are shooting up for the second time in as many months. Federal Reserve Gov. Christopher Waller attributes the volatility to concerns about rising national debt levels.
The Senate will likely revise the House bill, which left tax-exempt bonds untouched after months of speculation.
