How Treasury Auctions Work:
Marketable securities can be bought, sold, or transferred after they are originally issued. The U.S. Treasury uses an auction process to sell these securities and determine their rate or yield. Annual auction activity:
oOffers 4 types of securities with varying maturities
oConducted 301 public auctions in 2010. View the current financing pattern.
oIssued approximately $8.4 trillion in securities in 2010.
To finance the public debt, the U.S. Treasury sells bills, notes, bonds, and Treasury Inflation-Protected Securities (TIPS) to institutional and individual investors through public auctions. Treasury auctions occur regularly and have a set schedule. There are three steps to an auction: announcement of the auction, bidding, and issuance of the purchased securities.
A strong Treasury auction and an uneventful policy statement from the Federal Reserve can pave the way for Mortgage Rates to improve to their best levels since late September/early October today. Although the improvements haven't translated to a lower Best...