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How Successful are US Treasury Auctions

  1. Aug 6, 2009 #1
    I came across the following quote:

    Not sure how accurate it is or exactly what everything means in the quote but I wouldn't mind hearing some opinions on it.
  2. jcsd
  3. Aug 21, 2009 #2


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    I'll give it a go but let me say firstly I'm just doing it so that hopefully someone corrects me and I learn from it rather than any real understanding.

    Essentially what it says is that while at first glance auctions of bonds seem to be going succesfully it not really true. Auctions actually aren't going to well hence the need to schedule them more frequently than usual. One might point out that the bid/cover ratio is quite good at 1.92 but in fact its only 0.92 since inevitably the first bid is placed by the bank itself through a proxy.
  4. Aug 21, 2009 #3
    In words that I can understand: Less and less successful each day....
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