A U.S. Treasury auction of short-term debt Monday had strong demand indicators.

The Treasury auctioned $96.1 billion in 13-week bills and $82.6 billion in 26-week bills.

The 13-week auction had a yield of 3.715%, down from a market level of 3.816% beforehand. It was unchanged from last week's offer.

The 26-week tender cleared at 3.790%, down from a market level of 3.916% and compared with 3.780% in the Aug. 17 auction.

An auction yield lower than market pricing indicates robust demand for the securities.

The bid-to-cover ratio, another measure of investor demand, was 3.08 in the 13-week auction, up from the prior six-month average of 2.83. The 26-week ratio was 3.05 compared with a 2.91 average.

The auctions come ahead of a press conference where Treasury Secretary Scott Bessent is expected to give details on new economic sanctions against Iran, which could have an impact on bond trading.

The U.S. Treasury has been increasing its reliance on short-term borrowing, as long-term rates spike.