As investors want a bigger risk premium, upcoming Treasury note auctions may clear over the 32% rate. Many analysts anticipate T-bill yields will continue to rise as investors re-price their assets in response to increasing inflation. In August 2022, inflation reached 33.9%, driven by non-food inflation of 33.36% (+2.3%). According to Databank Research's Weekly Fixed Income Update, domestic investors continue to choose short-term bonds in the face of rising inflation, with a focus on the tenors 2022-2025. In July 2022, the most recent bond issue sold at 29.50%. The government sells Treasury securities for $1.92 billion. The Treasury received $1.92 billion from the T-bill auction last week, out of bids totaling $1.94 billion. This accounted for 98.90% of all bids. Accepted bids were 19.90% higher than the refinancing obligation and 11.64% higher than the auction target. The 91-day bill received 29.91%, while the 182-day bill received 31.14%. The government will offer 1.33 billion in T-bills. This week, the government is anticipated to sell $1.33 billion in bills maturing between 91 and 182 days in order to refinance total maturities of $1.24 billion.
