Recent demand for Fed short-dated credit has risen, bucking the downward trend. Data from Fed auctions shows both the demand and the number of bidders rose for 28-day credit at the most recent auction, on December 14. The bid/cover ratio of the most recent auction was 0.61.
The last 84-day credit auction was September 8, 2009, so a comparison isn’t possible. But the most recent longer-term credit auction (November 11, 42-day term) also showed a significant increase in demand. The bid-cover ratio was 0.67, compared to an average 0.49 for the four previous auctions.