Investors Grow Pickier on US Treasury Bills as Fed Path and Supply Remain Uncertain

The shift is less about demand disappearing than about demand becoming conditional, which matters most for the marginal buyer of short-dated paper as deficits keep issuance heavy. Slower money-market inflows put the burden of absorption on a narrower base of buyers, a dynamic that touches funding markets well beyond Treasuries themselves. Whether selectivity hardens into a broader capacity constraint, and how the Fed's path interacts with supply, is the open question worth watching.