The U.S. Treasury began selling an additional $40 billion of debt to meet demand for government securities in an effort to alleviate ``protracted shortages.''
The first two of four so-called reopenings of 10-year notes sold at higher yields than the outstanding securities were trading at before the auctions. In giving dealers one hour to prepare for the sales, the government was forced to offer concessions, meaning it lost $345 million in potential proceeds, according to an analysis by Credit Suisse Securities USA LLC.
Demand for the relative safety of government securities has surged this month as the seizure in credit markets around the world deepened. That has resulted in trades in the repurchase agreement, or repo, market going uncompleted. Such failures to deliver or receive Treasuries in the $7 trillion-a-day market for borrowing and lending securities have set a record.
Source
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment