Current Issues in Economics and Finance

The Treasury Auction Process: Objectives, Structure, and Recent Adaptations

February 2005Volume 11, Number 2
JEL classification: G18, G28, H63

Authors: Kenneth D. Garbade and Jeffrey F. Ingber

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.

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