# T-Bill Yields Rise as Funding Markets Diverge

> Treasury bills see sharp yield increases amid growing supply, but overnight repo markets stay calm.
- Title: T-Bill Yields Rise as Funding Markets Diverge · mint
- Summary: Treasury bills see sharp yield increases amid growing supply, but overnight repo markets stay calm. Treasury-bill yields rose to 4.05% as new issuance tests…
- Keywords: t-bill, treasury, funding markets, overnight repo, sofr, fed, treasury bills, yields, issuance, market stability, money, business
- Source: mint — https://livemint.com/market/funding-markets-diverge-as-t-bills-cheapen-overnight-repo-calm-11792179755736.html
- Published: 2026-10-16T19:42:35+00:00
- Read time: 1 min
- Topics: t-bill, treasury, funding markets, overnight repo, sofr, fed, treasury bills, yields, issuance, market stability, money, business
## T-Bill Yields Rise
Treasury-bill yields have risen sharply as a wave of new issuance tests investor demand.
## Record-Low Demand
The eight-week bill auction showed record-low demand and yields at 4.05%, the highest in over a year.
## Investor Reluctance
Investor reluctance to pile into growing T-bill supply due to widening deficit and uncertain Fed rate path.
## Funding Market Stability
Overnight funding markets remain flush with cash despite growing pressure in T-bill debt.
## Barclays View
Barclays Plc strategist Samuel Earl noted competing forces shaping money markets this month.
## Treasury Issuance
Treasury has issued nearly $100 billion of net T-bills through first half of October.
## Repo Rates Stable
Repo rates have remained stable due to structural decline in leverage demand and compressed basis opportunities.
## Key takeaway

Treasury-bill yields rose to 4.05% as new issuance tests investor demand, while overnight repo rates remain stable.