Treasury's August 31 six-month bill cleared at 3.885 percent with primary dealers absorbing 40 percent of the sale, their largest share since December 2025.

The Federal Reserve Board disclosed that four Reserve Bank boards asked for a 4 percent discount rate on July 29, double the number that made the request nine days earlier.

Treasury sold $44 billion of seven-year notes at 4.512% on August 27, the highest stop for the maturity since December 2024, as indirect bidders pulled back.

The 2-year Treasury yield closed at 4.34% on August 28, up 14 basis points, after Fed Chairman Kevin Warsh told Jackson Hole the central bank still has work to do on inflation.

Reserve balances at the Fed fell to $2.925 trillion in the week ended August 26, the lowest since April, as Treasury cash and portfolio runoff drained the banking system.

Real consumer spending was flat in July as goods outlays fell $49.9 billion and services rose $86.2 billion, with core PCE inflation stuck at 3.3%.

The Fed's H.6 release put M2 at a record $23.218 trillion in July 2026, up 5.41% on the year, the fastest money supply growth since June 2022.

The Fed held $1.9307 trillion of mortgage bonds in the week ended August 19, the lowest since July 2020, as the FOMC routes all agency principal into Treasury bills.

Treasury's average interest rate on all federal debt reached 3.447% on July 31, the highest since June 2009, as low-coupon notes mature into yields above 4%.

Treasury sells $183 billion of two, five and seven-year notes August 25 to 27, the same week July PCE prints and Fed Chair Kevin Warsh gives his first Jackson Hole keynote.