The Treasury auction process: objectives, structure, and recent acquisitions

Garbade, Kenneth D.; Ingber, Jeffrey F.

Journal Article

The Treasury auction process: objectives, structure, and recent acquisitions

Abstract: Treasury auctions are designed to minimize the cost of financing the national debt by promoting broad, competitive bidding and liquid secondary market trading. A review of the auction process-from the announcement of a new issue to the delivery of securities-reveals how these objectives have been met. Also highlighted are changes in the auction process that stem from recent advances in information-processing technologies and risk management techniques.

Keywords: Government securities; Treasury bills; Auctions; Treasury notes;