Open AccessThe Economics of Treasury Securities Markets
Author(s) -
Sushil Bikhchandani,
ChienWei Huang
Publication year - 1993
Publication title -
the journal of economic perspectives/the journal of economic perspectives
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 9.614
H-Index - 196
eISSN - 1944-7965
pISSN - 0895-3309
DOI - 10.1257/jep.7.3.117
Subject(s) - treasury , common value auction , debt , monetary economics , yield (engineering) , economics , revenue , business , security market , third market , financial market , financial system , finance , financial economics , bond market , microeconomics , law , political science , materials science , metallurgy
The market for Treasury securities attracted considerable attention recently, after alleged infringements by Salomon Brothers. Several questions have been raised about the best way of selling U.S. government debt. One issue is whether altering the auction format would yield greater revenues for the Treasury. Another related question is how susceptible the existing mechanism for selling Treasury securities is to manipulation by buyers. In this paper, we describe what economists' analyses of auctions imply about the market for Treasury securities.