NEW YORK Jan 13 Interest rates on U.S.
one-month Treasury bills fell below zero mid-afternoon Monday as
traders scrambled for dwindling supply of these ultra
short-dated debt in advance of a $15 billion auction of
one-month bill supply on Tuesday, analysts said.
The Treasury Department earlier said it will sell $15
billion of T-bills due on Feb. 13, compared with the $18 billion
of this T-bill maturity last week.
Tuesday's one-month auction size matched the one last seen
on April 27, 2010.
Analysts have anticipated a reduction in T-bill supply as
the Treasury Department gears up for the introduction of a
two-year floating-rate note issue later this month and less
short-term borrowing needs due to higher receipts.
The U.S. government said on Monday it last month booked the
largest budget surplus for any December on record, boosted by
payments from government-controlled housing finance agencies
Fannie Mae and Freddie Mac.
On the open market, the interest rate on T-bills due Feb. 6
was last quoted at minus 0.5 basis point to plus
0.5 basis point. It ended at 1 basis point on Friday, according
In "when-issued" activity, traders expected the interest
rate on the upcoming one-month T-bill supply to
sell at an interest rate of minus 0.25 basis point to plus 0.25