8.9 billion and 7.7 billion issued simultaneously, highlighting the rolling value on the eve of Treasury bond auctions

(1) The US Department of the Treasury will auction $89 billion of 13-week Treasury bills and $77 billion of 26-week Treasury bills, with the settlement date set for June 18. Both sales are cash rollover operations. (2) The yield for the 13-week Treasury bill this week stands at 3.635%, which is 1.75 basis points lower than last week's auction level. The forward rollover spread is 1.5 basis points, offering value. (3) The yield for the 26-week Treasury bill this week stands at 3.68%, 0.5 basis points lower than last week's auction level. The forward rollover spread is 0.7 basis points, also providing value. (4) Due to the valuation advantage of the forward rollover spread, both Treasury bills are expected to attract bidding demand. (5) SOFR futures pricing indicates a 54% probability of a 25 basis point rate hike before September, and a 100% probability before December. Thus, the 6-month Treasury bill may face pressure, but if economic growth slows, reducing the likelihood of rate hikes, there is upside potential. (6) The 3-month Treasury bill serves as a parking option for funds. Those who believe the Federal Reserve's tightening pace will be gradual or think the current forward pricing is incorrect may begin to take small positions in the 6-month sector.