Treasury Inflation-Protected Securities

Real yields are rising, but haven’t yet hit highs of 2023

Posted on April 28, 2024 by Tipswatch

By David Enna, Tipswatch.com

I’ve been watching with fascination as market real yields of Treasury Inflation-Protected Securities have been steadily rising in recent weeks. We can look at several apparent causes:

U.S. inflation has perked higher since the beginning of the year, with the annual rate of all-items CPI rising from 3.1% in January to 3.5% in March.
The U.S. economy is showing few signs of stalling, with the job and housing markets remaining robust. The unemployment rate stands at 3.8%, still close to a 10-year low.
The bond market’s inflation expectations have been steadily increasing, with the 10-year inflation breakeven rate rising from 2.21% on Jan. 2 to 2.42% on April 24.
The Federal Reserve has backed off dovish talk and is now preaching a “higher for longer” message for U.S. short-term interest rates.
The U.S. Treasury’s funding needs continue to rise with ever-growing federal deficits, causing longer-term yields to remain elevated.

Definition: The real yield to maturity of a TIPS is its above-inflation annual return over the life of the investment. For example, on April 18 the Treasury auctioned a new 5-year TIPS with a real yield of 2.242%, which means that TIPS will out-perform official U.S. inflation by 2.242% over the 5-year term.

Here is the trend in 5-, 10- and 30-year real yields since July 2023:

As you can see, real yields peaked in October 2023 at a higher level than today’s market. The real yield curve at the time was essentially flat, with the entire maturity spectrum yielding in a range from 2.47% to 2.58%. That trend continued for about a month, before real yields began falling, fairly dramatically.

What’s interesting is that the September 2023 annual inflation rate (which was announced Oct. 12, 2023) came in at 3.7%, not much higher than today’s 3.5%.

Also at the time, the Federal Reserve was pushing the idea that short-term interest rates might not need to go any higher. And in fact, the Fed has held its federal funds rate in the range of 5.25% to 5.50% since July 2023. No cuts, no increases.

It was the Fed’s “no higher” message that helped cause interest rates to begin a steady decline into January 2024. In addition, the U.S. entered a mildly disinflationary trend through the end of 2023. As a result, real yields fell sharply through the end of the year:

But now, inflation is seemingly again a rising threat, and the Fed is hinting that it might need to increase interest rates if the trend continues. I think an increase is unlikely, but once-likely rate cuts might be out of the picture for the rest of 2024. Stock investors seem to be taking that news with a yawn, but the bond market is in turmoil, with the total bond market producing a total return of -3.0% year to date.

Here are how real yields stand today compared with their highs of October 2023:

As you can see, the 2023 yields were about 30 basis points higher than today’s elevated levels. October 2023 was a great month for building a ladder of TIPS investments, with all maturities yielding close to 2.5% above inflation. April 2024, in fact, is also an opportune time for making new TIPS investments.

But as this chart shows, real yields could go higher. Or, as happened in the months after October 2023, they could move sharply lower. A lot will depend on inflation trends and what actions the Fed decides to take through the end of the year … an election year.

What this means

I am always looking for a “new investing era” and I am certain we are well into an era of normalized interest rates, after a decade-plus of Federal Reserve actions to hold rates at ultra-low levels.

By historical standards, a 10-year Treasury note with a nominal yield of 4.67% and a 10-year TIPS with a real yield of 2.24% aren’t outliers. These were fairly normal in the past. In fact, the 10-year Treasury note had a nominal yield above 5% for nearly three decades from 1970 to 2000, as shown in this chart:

So are interest rates peaking in April 2024? My guess is: Probably. But it will depend on actions and direction from the Federal Reserve, which right now seems fairly happy with higher yields keeping the U.S. economy (and potentially inflation) under control.

Any change for I Bonds?

The Treasury will be resetting the fixed rate of the U.S. Series I Bond on Wednesday, May 1. The current fixed rate is 1.3%. That rate, which was the highest in 16 years, was set on Nov. 1, 2023, just after the October surge in real yields. The same thing is happening now, with a surge in April 2024.

My guess is that the Treasury will hold the I Bond’s fixed rate at 1.3%, and when combined with a new variable rate of 2.96%, I Bonds issued from May to October will be getting a composite rate of 4.27%, down from the current 5.27%.

Could the fixed rate rise, maybe to 1.4%? It could, if the Treasury attempts to factor in higher future real yields. Seems iffy to me.

The I Bond rate announcement could be coming on the morning of Tuesday, April 30, or more likely on the morning of Wednesday, May 1. TreasuryDirect has this message posted on a link from its homepage:

The current rate of 5.27 percent is available until 11:59 p.m. Eastern Time on Tuesday, April 30. The new rate becomes available at midnight.

That would seem to indicate TreasuryDirect will still be accepting orders for April I Bonds on Tuesday. But I would not risk that. If you are buying and want the higher April rate, buy Monday at the latest.

• Now is an ideal time to build a TIPS ladder

• Confused by TIPS? Read my Q&A on TIPS

• TIPS in depth: Understand the language

• TIPS on the secondary market: Things to consider

• Upcoming schedule of TIPS auctions

* * *

Feel free to post comments or questions below. If it is your first-ever comment, it will have to wait for moderation. After that, your comments will automatically appear.Please stay on topic and avoid political tirades.

David Enna is a financial journalist, not a financial adviser. He is not selling or profiting from any investment discussed. I Bonds and TIPS are not “get rich” investments; they are best used for capital preservation and inflation protection. They can be purchased through the Treasury or other providers without fees, commissions or carrying charges. Please do your own research before investing.

Posted in Federal Reserve, I Bond, Inflation, Investing in TIPS, Savings Bond, TreasuryDirect | 2 Comments

Let’s weigh in on the I Bonds vs. T-bills debate

Posted on April 21, 2024 by Tipswatch

By David Enna, Tipswatch.com

Last week I was being interviewed by CNBC’s Kate Dore about I Bond investment strategies, and I found myself asking her a question: “Do you think the Federal Reserve has learned a lesson?”

In other words, after a decade of manipulating the U.S. Treasury market and money supply, has the Fed really learned its actions can have dire consequences? We got a 40-year-high surge in inflation. Is the Fed done with all that?

We can’t know, of course. I asked this question because I have been getting a lot of feedback from readers and seeing heated discussions on the Bogleheads forum about this issue: Should I dump I Bonds to buy T-bills? It is a reasonable question because I Bonds with a 0.0% fixed rate will soon be earning 2.96% for six months. Even for new I Bonds, the May-to-October composite rate will fall to about 4.27% at a time when 4-week T-bills are paying 5.49%.

T-bills are going to have a 100-basis-point advantage over new I Bonds, and that is hard to ignore. For example, here are two perfectly logical comments from readers:

When interest rates were still very low, there was a 7.12%, 9.62% and then a 6.48% APR staring you right in the face. You’d be ignorant to not pounce on it. Add on the compounding interest and the money being safe, and you’re all set. However, the tide has turned and now I-bonds are still “okay” at 5.27% and 4.27% APR (average of 4.77%), but I can get a 4-week bond for 5.33% APR with no penalty and my money is available within 4 weeks.

And this:

Hard pass. This only makes sense if (1) fixed rate doesn’t go higher and (2) very long term. My savings accounts pay 5%+ and easy to lock 1-2 year CDs at 5-6%. Combine the 3 month penalty plus subpar 4.27% for 6 months and this is a loser.

These readers are thinking logically, because they are committed to investing for the short term, and as I noted in my recent article on the I Bond buying equation, I Bonds are no longer the most attractive investment for the short term.

But for the long term?

Over the last 13 years, even I Bonds with 0.0% fixed rates have greatly out-performed 4-week T-bills. Why? Because the Fed controls short-term interest rates, but has no actual direct control over U.S. inflation, which sets the I Bond’s variable rate. The results:

This gets back to my question: Has the Fed truly learned its lesson about manipulating the U.S. bond market? Will it now be unwilling to force nominal yields to close to zero and real yields below zero? I think it has, for the time being, and we won’t see ultra-low interest rates in the near future.

But what happens if the economy begins spiraling downward, or the banking system faces another crisis? Can the Fed resist the temptation to send interest rates tumbling and begin another phase of quantitative easing? Take a look at the Federal Reserve’s balance sheet of U.S. Treasurys since 2009:

From August 2019 to June 2022, the Federal Reserve’s balance sheet of Treasury holdings increased 175%. And this was the effect on the U.S. money supply, combined with very generous direct payments to U.S. taxpayers during the Covid crisis:

And finally, the effect of the Fed’s actions on U.S. inflation over the same period:

These charts are relevant because the Federal Reserve is now considering paring back quantitative tightening, meaning it will slow down reduction of its balance sheet, even though it remains double the size of the 2020 level. This is from a recent Reuters report:

The Fed is currently allowing up to $60 billion per month in Treasury bonds and up to $35 billion per month in mortgage bonds to mature and not be replaced as part of a process called quantitative tightening, or QT.

“Participants generally favored reducing the monthly pace of runoff by roughly half from the recent overall pace,” the minutes said.

Most Americans will have no idea of this change, which eventually should help bring longer-term interest rates a bit lower. And in due course, the Fed will begin gradually lowering short-term interest rates, which will get noticed. The process should be slow and careful, as long as the U.S. economy remains healthy.

For the near-term, T-bills are going to offer better yields than I Bonds. Short-term investors should favor T-bills if their investing horizon is 2 years or less.

Some readers have suggested: “Well, if the T-bill yield falls I will just jump back into I Bonds.” The problem, though, is the $10,000 per person limit on purchases. It takes a long time to build a sizable holding in I Bonds, unless you use complicated strategies like tax-refund paper I Bonds and purchases through gift-box, trusts, or business-owner strategies.

And to be clear, I love T-bills and have been using staggered rollovers of 13- and 26-week T-bills as an emergency cash holding for nearly two years.

But for the longer-term, I Bond still make sense. They protect against unexpected future inflation and unexpected future Federal Reserve manipulation. If we see ultra-low interest rates again, even 0.0% fixed-rate I Bonds are going to offer a return matching inflation and well above T-bills. Today, I Bonds are selling with a permanent fixed rate of 1.3%, the highest in more than 16 years.

Another viewpoint …

Here is a new video from Jim of the “I Was Retired” YouTube channel, addressing 5-year potential investments in Treasury notes, TIPS and/or I Bonds. The video is well organized and an accurate look at the three investments. (Another thing I really appreciate is that Jim has his liquor cabinet directly behind his filming stage. Yes, and I totally understand!):

• I Bond dilemma: Buy in April, in May, or not at all?

• Confused by I Bonds? Read my Q&A on I Bonds

• Let’s ‘try’ to clarify how an I Bond’s interest is calculated

• Inflation and I Bonds: Track the variable rate changes

• I Bonds: Here’s a simple way to track current value

• I Bond Manifesto: How this investment can work as an emergency fund

Posted in Cash alternatives, Federal Reserve, I Bond, Inflation, Treasury Bills, TreasuryDirect | 36 Comments

New 5-year TIPS gets a real yield of 2.242%, 2nd highest in 15 years

Posted on April 18, 2024 by Tipswatch

By David Enna, Tipswatch.com

The Treasury’s auction of $23 billion in a new 5-year Treasury Inflation-Protected Security — CUSIP 91282CKL4 — resulted a real yield to maturity of 2.242%, the 2nd highest result for this term since October 2008.

The coupon rate was set at 2.125%, the 2nd highest for this term since April 2006.

Earlier in the day, the most recent 5-year TIPS was trading on the secondary market with a real yield to maturity of 2.18%. This auction got a result 6 basis points higher, but it came in below the “when-issued” prediction of 2.27%, so demand was strong. The bid-to-cover ratio was 2.58, also indicating decent demand.

The April 5-year TIPS auction tends to get a real yield higher than the market established by the October version from the year earlier. That is because of the typical swoon in end-of-year non-seasonal inflation, which will hit right before this TIPS matures in 2029. More on that for nerds.

All those details aside, this is a good result for investors in today’s auction, with the real yield holding well above 2.0%. Here is the trend in the 5-year real yield over the last 3 years, showing the dramatic increase since spring 2022:

Pricing

Because the coupon rate for this new TIPS was set slightly below the real yield to maturity, investors got it at a discount.

Here is how the pricing would work out for an investor purchasing $10,000 par value of this TIPS:

Par value: $10,000
Inflation index on settlement date of April 30: 1.00309
Total principal purchased: $10,000 x 1.00309 = $10,030.90
Unadjusted price: 99.452867
Cost of investment: $10,030.90 x 0.99452867 = $9,976.02
+ accrued interest of about $8.74

In summary, the investor paid $9,976.02 for $10,030.90 of principal and will receive inflation accruals through the maturity date of April 15, 2029, plus twice-a-year coupon payments totaling 2.125%.

Inflation breakeven rate

With the nominal 5-year Treasury note yielding 4.68% at the auction’s close, this TIPS gets an inflation breakeven rate of 2.44%, about in the midrange of recent auctions of this term. This means it will outperform the nominal Treasury if inflation averages more than 2.44% over the next five years.

This chart shows the inflation breakeven trend over the last five years. Even though 2.44% is a high breakeven rate by historical standards, it is on the low end of more-recent trends as inflation has ramped higher.

Reaction to the auction

This one appears to have gone off as expected, with CUSIP 91282CKL4 getting the expected “April boost” in yield. Demand appears to have been solid. I was a buyer, adding to my 2029 holdings. This is from the Reuters report:

The results of the U.S. Treasury’s $23 billion auction of U.S. five-year Treasury Inflation-Protected Securities on Thursday were stronger-than-expected across almost all metrics. The note’s high yield stopped at 2.242%, lower than the expected rate at the bid deadline, which suggested that investors were willing to settle for a lower yield to take the security.

The bid-to-cover ratio, another measure of demand, was 2.58, slightly above the 2.55 seen in December, but much higher than October’s 2.38. The note’s bid-to-cover ratio was the highest since June 2022.

Here is a history of recent auctions of this term:

• Now is an ideal time to build a TIPS ladder

• Confused by TIPS? Read my Q&A on TIPS

• TIPS in depth: Understand the language

• TIPS on the secondary market: Things to consider

• Upcoming schedule of TIPS auctions

* * *

Posted in Inflation, Investing in TIPS, TreasuryDirect | Tagged bonds, finance, inflation, interest-rates, investing | 40 Comments

I Bond dilemma: Buy in April, in May, or not at all?

Posted on April 14, 2024 by Tipswatch

By David Enna, Tipswatch.com

With Wednesday’s release of the March inflation report, the buying equation for U.S. Series I Savings Bonds became a bit clearer. We now know the I Bond’s variable rate will fall from the current 3.94% to 2.96% at the May 1 reset.

That’s a big drop. Does it make I Bonds unattractive? I don’t think so, and the reason is the I Bond’s current fixed rate of 1.3%, the highest in more than 16 years. But the fixed rate will also reset on May 1. So there is the key question: Where will the Treasury reset the fixed rate?

Confused? This is fairly simple. An I Bond is a Treasury security that earns interest based on combining a fixed rate and an inflation rate.

The fixed rate will never change. So if you bought an I Bond in 2014 with a fixed rate of 0.2%, it will continue to have a 0.2% fixed rate for the life of the bond. Purchases through April 29, 2024, have a permanent fixed rate of 1.3%.
The inflation-adjusted rate (often called the variable rate) changes each six months to reflect the running rate of inflation. That rate is currently set at 3.94% annualized and will drop to 2.96% after May 1. All I Bonds will eventually get the 2.96% variable rate, with the start date depending on the original month of purchase.
The composite rate is a combination of these two rates, currently 5.27%, annualized, for a full six months for any bond purchased through April 2024.

Projecting the fixed rate

The following projection results from an inexact science, and in fact is simply a guess based on a decade of observations. The Treasury has never revealed an exact formula for setting the fixed rate, but it has noted that current trends in real yields are a factor. TreasuryDirect provides this cryptic information:

The Secretary of the Treasury, or the Secretary’s designee, determines the fixed rate. The rate is based on market rates that have been adjusted to account for the value of components unique to savings bonds. These include the early redemption put option, tax deferral feature, deferred purchase feature, and Treasury’s administrative costs.

Based partly on feedback from Boglehead geniuses, I have settled on looking at the half-year average of the real yields of 5- and 10-year Treasury Inflation-Protected Securities as the best indicator of the next fixed rate. I then apply a ratio of 0.65 to the average. In recent years, this has been pretty accurate, as shown in this table:

The fixed-rate numbers shown in red are projections and have not been rounded.

In most cases, the 0.65 ratio has been on target, especially when applied to 5-year TIPS real yields. The May to October 2017 period is interesting, because the 5-year average was much lower than the 10 year, and the Treasury set the rate lower to match the 5-year average.

The Treasury always sets the fixed rate to a tenth decimal point, and my May 2024 projections are currently at 1.25% and 1.26%, with two weeks of data still to come. My conclusion (OK, guess) is that the Treasury will set the I Bond’s new fixed rate at either 1.2% or 1.3%.

But, as I always say, “The Treasury sometimes does weird things.”

What does this mean?

I Bond purchases are limited to $10,000 per person per year unless you use your tax return to get paper I Bonds (a bit late for that strategy) or add to your holdings through gift-box, trusts, or business-owner strategies.

In my opinion — and I know some readers disagree — April’s higher variable rate (3.94% vs. 2.96%) and the locked-in 1.3% fixed rate make purchasing I Bonds to the limit in April the wiser choice. For that reason, I already purchased to the limit in March and have scheduled a gift-box set for purchase on April 25.

In this chart I have included some potential fixed rate changes, ranging from 1.10% to 1.50%. The most likely results are 1.20% or 1.30%, but anything can happen. By buying in April, you guarantee that your investment will earn 5.27% for six months and 4.27% for six months, or around 4.8% for the year.

Buying in May drops the likely return to 4.17% or 4.27% for the first six months, and then an unknown return for the next six months, depending on inflation from April to September 2024.

If the fixed rate is set at 1.50%, the buyer in May will be the winner in the long run. I personally like the certainty of the April purchase.

If you want to purchase in April, you can go into TreasuryDirect at any time and schedule the transaction. I recommend setting the date at April 25 or 26 to give Treasury time to complete the transaction in April. If you wait until April 30, your I Bond will be issued in May.

The rollover strategy. With the variable rate dropping to 2.96%, I Bonds with a fixed rate of 0.0% will be paying 2.96% for six months. That’s below market, and some investors may want to redeem any I Bonds with 0.0% fixed rates and roll that money over into the 1.3% April version, either through new purchases or the gift-box strategy. I discussed that strategy in a March 31 post.

Or, just hold? I’ve always stressed that the best I Bond strategy is to continue building your stockpile, until you have an amount that would work as a “large” emergency spending resource in retirement, all tax-deferred and inflation protected. If you are in the accumulation phase, just keep the 0.0% I Bonds and add the 1.3% version. And then, someday, use this as a spending account when needed.

Wait until October or November? Some readers have speculated that real yields could continue rising through 2024, making a higher fixed rate likely later in the year. That could happen. It’s iffy. But one advantage of a higher rate reset in November is that the fixed rate would carry over to January 2025, when the purchase limit resets.

Are I Bonds that attractive?

With short-term T-bill and money market rates topping 5%, many investors are shunning I Bonds because of the potentially lower nominal return plus the three-month interest penalty for redemptions within five years. Some thoughts:

We just went through a phase of inflation hitting 40-year highs, and higher prices seem to be stubbornly hanging on nearly two years later. Inflation protection, for part of your portfolio, looks like a wise choice.
Eventually, the Federal Reserve would like to start cutting short-term interest rates and then the T-bill and money market returns will begin falling. Some banks have already started lowering rates on high-yield savings accounts.
I Bonds, if held for 5 years, create an inflation-protected store of cash you can use for future needs, with no penalty for redemption except for federal taxes on the interest.

Is this a short-term investment? I Bonds aren’t a good choice for money you will need in the next one or two years. You can get a 2-year Treasury note paying about 4.9%. That nominal return is likely to beat the return of an I Bond after the three-month interest penalty is applied.

Aren’t TIPS the better choice? There is an auction of a new 5-year TIPS this week and the real yield to maturity looks likely to be close to, or top, 2.0%. It could have a 70- to 80-basis-point advantage over the I Bond with a fixed rate of 1.3%. So yes, I think TIPS with real yields in the 2.0% range are more attractive. But many investors shun TIPS because of the complexity, and I Bonds have advantages of tax-deferred interest, a flexible maturity, and rock-solid deflation protection. I continue to invest in both.

Is inflation really a problem? The risk is there. Investments in TIPS and I Bonds provide insurance against unexpectedly high inflation, such as we saw in June 2022 when annual inflation rose to 9.1%. If inflation suddenly drops off, inflation-protection may slightly under-perform, but investors are still winners because no one wants high inflation.

I welcome your thoughts.

• Confused by I Bonds? Read my Q&A on I Bonds

• Let’s ‘try’ to clarify how an I Bond’s interest is calculated

• Inflation and I Bonds: Track the variable rate changes

• I Bonds: Here’s a simple way to track current value

• I Bond Manifesto: How this investment can work as an emergency fund

* * *

Posted in Cash alternatives, I Bond, Inflation, Savings Bond, TreasuryDirect | 66 Comments

Next week’s 5-year TIPS auction has solid appeal

Posted on April 12, 2024 by Tipswatch

By David Enna, Tipswatch.com

Note: I am posting this auction preview early because my I Bond buying guide will be going up Sunday morning. Keep in mind that real yields are currently highly volatile and will change by Thursday’s auction.

The U.S. Treasury on Thursday will offer $22 billion in a new 5-year Treasury Inflation-Protected Security, CUSIP 91282CKL4. The real yield to maturity and coupon rate will be set by the auction results.

Definition: A TIPS is an investment that pays a coupon rate well below that of other Treasury investments of the same term. But with a TIPS, the principal balance adjusts each month (usually up, but sometimes down) to match the current U.S. inflation rate. So, the “real yield to maturity” of a TIPS indicates how much an investor will earn above inflation each year until maturity.

As the market stands one week out, it looks like this TIPS will get an attractive result: Potentially both a real yield and coupon rate higher than 2.0%. The Treasury’s 5-year real yield estimate as of the market close Thursday was 2.13%, which would result in a coupon rate at or above 2.0%.

But this market is volatile. Wednesday’s March inflation report reminded everyone that inflationary trends are continuing, and set off a rout in both the stock and bond markets. The 5-year real yield has increased 20 basis points since April 1. That is a huge move higher.

It appears that things are cooling today, with the 5-year TIPS trading at about 2.05%. So a lot can change before Thursday’s auction close at 1 p.m. EDT.

More auction details:

The Treasury offering of $23 billion is the highest ever for an TIPS auction of this term, up from $21 billion at last April’s auction. The increased supply, however, shouldn’t have much effect on demand.
The 5-year auction in October 2023 resulted in a real yield to maturity of 2.440% and a coupon rate of 2.375%, both 15-year highs. This auction looks unlikely, at this point, to break those marks.
If the coupon rate remains above 2.0%, it will be only the 2nd 5-year TIPS in 17 years to reach that mark.

Here is the trend in 5-year real yields over the last nine years:

So there is a lot to like about this TIPS, even in comparison with the U.S. Series I Savings Bond, currently with a real yield of 1.3%. The TIPS will probably have a 70+ basis-point advantage. At that spread, I would prefer the TIPS (but I continue to invest in both.)

Pricing

Because it is a new TIPS, CUSIP 91282CKL4 should auction with a price close to par value. The coupon rate will be set at the 1/8th-percentage-point marker below the auctioned real yield, so the unadjusted price will be below 100. However, this TIPS will have an inflation index of 1.00309 on the settlement date of April 30. Because of that, the price should be close to par, or even slightly above.

Inflation breakeven rate

With the nominal 5-year Treasury note currently trading at 4.54%, this TIPS at this moment would have an inflation breakeven rate of about 2.49%, fairly high by historical standards. A higher breakeven rate indicates that a TIPS is more expensive versus a nominal Treasury.

Is the 5-year note attractive at 4.54%? I’d say it is and it is likely to provide a return above inflation over the next 5 years. But with the TIPS, you get a guaranteed return of about 2.0% above inflation. I’d go with the guarantee.

Here is the trend in the 5-year inflation breakeven rate over the last 9 years, showing that the current level is high-ish, but well under the peak we saw in 2022.

Final thoughts

I just took a look at my 2029 TIPS holdings and I am decently allocated for that year. However … I may take a look at adding a bit at this auction if the real yield is likely to hold above 2.0% (a desirable target by historical standards.)

Things could get crazy in the next week, however, with a potential attack by Iran against Israel looming, oil prices rising, inflation fears growing. In times of fear, Treasury yields generally fall as demand rises. If you want to invest in this TIPS, keep an eye on the Treasury’s Real Yields Curve page (which updates at the close of the market each day) and Bloomberg’s U.S. Yields page (updates secondary-market trends in real time).

This TIPS auction closes Thursday at 1 p.m. EDT. Non-competitive bids at TreasuryDirect must be placed by noon Thursday. If you are putting an order in through a brokerage, make sure to place your order Wednesday or very early Thursday, because brokers cut off auction orders before the noon deadline.

I will be posting the auction results soon after the close on Thursday. Here is a history of auction results for this term over the last 9 years: