US Treasury Sells $638B in T-Bills; 10-Year Yield Dips After Yen Intervention
In the week of August 8, 2026, the US government conducted seven auctions, selling $638 billion in Treasury bills with maturities ranging from one month to one year. Among these auctions, three surpassed $100 billion, while one was just shy at $99 billion. There were no plans for longer-term Treasury notes or bonds. Following the Federal Reserve's July meeting, short-term yields decreased, and long-term yields also dropped after a currency intervention between the US and Japan. The 6-month T-bill auction recorded a high yield of 3.855%, which was a decline of 10 basis points from the prior FOMC auction. By Friday, the 6-month yield stood at 3.96%. The yields for the 10-year and 30-year notes fell to 4.65% and 5.19%, respectively. By the end of July, outstanding Treasury bills totaled $7.0 trillion.
Key facts
- The US government sold $638 billion in Treasury bills during the week, across seven auctions.
- Three auctions each sold more than $100 billion, and a fourth sold $99 billion.
- No auctions for Treasury notes or bonds were scheduled that week.
- Short-term Treasury yields edged down after the FOMC's no-rate-hike meeting in July.
- Long-term yields declined after US-Japanese intervention in currency markets, where the US sold euros and bought yen.
- The 6-month T-bill auction on Monday had a high yield of 3.855% (investment rate 3.986%).
- The 10-year Treasury yield declined by 10 basis points to 4.65% during the week.
- The 30-year Treasury yield declined by 8 basis points to 5.19%.
- T-bills outstanding reached $7.0 trillion by end of July, up $1 trillion year-over-year.
- Total marketable Treasury securities reached $31.4 trillion, up $2.5 trillion year-over-year.
- T-bills' share of total marketable securities rose to 22.2%.
- The author is not a buyer of 10-year maturities at current yields due to inflation concerns.
- The article mentions that the 10-year yield is a benchmark for mortgage and corporate bond rates.
- A surge of the 10-year yield above 5% would be concerning for Treasury Secretary Bessent.
Entities
Institutions
- US Treasury Department
- Federal Reserve
- FOMC
- WOLF STREET
Locations
- United States
- Japan