Has the 'hoarding' of government securities come to an end?

[Slimprofits]

Matthew Cowley in the Wall Street Journal on Tuesday:

Positive developments also have been seen in the market for overnight securities repurchase, or repos, where dealers and investors raise short-term funds by lending out Treasurys. The cost to borrow Treasurys rose above the Federal Reserve's fed funds rate last week, indicating market participants are no longer hoarding government securities.

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T-bill interest up - The Associated Press - 01/20/09

Interest rates on short-term Treasury bills rose in Tuesday’s auction to the highest in two weeks.

The Treasury Department auctioned $27 billion in three-month bills at a discount rate of 0.14 percent, up from 0.12 percent last week.

An additional $27 billion in six-month bills was auctioned at a discount rate of 0.325 percent, up from 0.29 percent last week.

The three-month rate was the highest since three-month bills averaged 0.15 percent on Jan. 5. The six-month rate was the highest since these bills averaged 0.32 percent, also on Jan. 5.

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Questions:

Is there more than one possible conclusion? Has Cowley drawn the correct conclusion? Has he jumped the gun?

[c1ue]

Re: Has the 'hoarding' of government securities come to an end?

I think without an acting Treasury secretary, as well as a 2 day old President, it is a little early to say things have changed.

My thesis has been that the QE and yield curve skewing process has been highly muted between Xmas and now due to the impending handover and the holidays.

But, of course, I could be wrong!