Future unclear as long bond supply halted.Reports on the plan of the U.S. Department of the Treasury to stop further 30 year auctions. Impact of the plan on investors and strategists; Benefit of the U.S. economy from the sharp fall in long term rates;...
TREASURY AUCTIONS FAIL CREDIT MARKETS FREEZE FUEL RATIONED EXTREME AFTERHOURS REPOS REPORTED FOOD SHORTAGES DEVELOP CHINESE ECONOMIC STRENGTH BOLDLY ADVERTISED FEDERAL CONTRACTORS GO UNPAID FAMINE BEGINS BANKS CURIOUSLY CLOSE SECRET SALES of BULLION EXPOSED MINT SALES SUSPENDED LARGEST MINT SALES RECORDED SELF...
Weak Demand in Treasury Bond Auctions? Has The U.S. Put Too Much Trust At Risk? May 8, 2009 America’s economic recovery now depends upon debt. Debt we “sell” to people like China in the form of Treasury bonds. The entire Obama budget is based upon debt. He swears he is for tax...
US deficits were financed since the early 1980s against a long-term trend of declining bond yields, so every participant in bond auctions began to know that in time bond values would always improve, even if the short-term outlook was uncertain. That is no longer the case. While it would...
Auctions allow the Maltese government to make securities available to the wider market by using the primary dealers as market makers. No Secondary Market Since the Maltese government very rarely issues debt instruments, it isn’t worth the cost for a bank to set up a specialist Treasury divisio...
“maturity transformation”. Sure enough, in February 2008 the auctions began to fail when there was a dash for cash. Suddenly lenders found that nobody wanted to buy their loans, so they could not get hold of their money. If the market for auction-rate securities had been a bank, you ...