US Treasury bill yields rise as money-fund demand slows

Slowing inflows into U.S. money-market funds are reducing demand for Treasury bills, causing their yields to climb above short-term rate benchmarks. Heavy Treasury issuance and lingering rate uncertainty may intensify downward pressure on prices going forward.

Despite these headwinds, funding markets remain stable and orderly. Analysts note that the combination of slower fund flows and elevated issuance could test bill valuations in coming weeks.