Former Tropical Depression Two strengthened to Tropical Storm Bill east-northeast of Cape Hatteras on Monday night. At 11:00 p.m. EDT on Monday the center of Tropical Storm Bill was located at latitude 36.7°N and longitude 69.8°W which put it about 335 miles (540 km) east-northeast of Cape Hatteras, North Carolina. Bill was moving toward the northeast at 23 m.p.h. (37 km/h). The maximum sustained wind speed was 45 m.p.h. (75 km/h) and there were wind gusts to 60 m.p.h. (95 km/h). The minimum surface pressure was 1003 mb.

The circulation around former Tropical Depression Two intensified on Monday night and the National Hurricane Center upgraded the system to Tropical Storm Bill. Even though the circulation around Bill was stronger, the distribution of thunderstorms was asymmetrical. The strongest thunderstorms were occurring in bands on the eastern side of Tropical Storm Bill. Bands on the western side of Bill consisted mainly of showers and lower clouds. Winds to tropical storm force extended out 70 miles (110 km) in the southeastern quadrant of Tropical Storm Bill. The wind was blowing at less than tropical storm force in the other quadrants of Bill. An upper level trough east of the Great Lakes was producing strong southwesterly winds that were blowing toward the top of Tropical Storm Bill. Those winds were causing moderate vertical wind shear and they were the cause of the asymmetrical distribution of thunderstorms.

Tropical Storm Bill will move through an environment that will be only marginally favorable for intensification during the next 24 hours. Bill will move over the warmer water in the Gulf Stream where the Sea Surface Temperatures are near 27°C on Tuesday. However, the upper level trough east of the Great Lakes will continue to cause moderate vertical wind shear, which will inhibit intensification. Tropical Storm Bill could intensify a little more on Tuesday, but the wind shear is likely to increase by Tuesday night.

The upper level trough east of the Great Lakes will steer Tropical Storm Bill rapidly toward the northeast. On its anticipated track Tropical Storm Bill will pass southeast of Nova Scotia on Tuesday. Bill could approach southeast Newfoundland on Tuesday night.