Tweet
We've discussed many of these, but some interesting things can be found in Bill Benton's latest piece: "Lending" a Helping Hand"
"Looking at more recent activity, the Fed executed purchases of treasury securities totaling $12.99 billion maturing in about seven years or more. These purchases came on 7/21, 7/23, and 7/29, with nearly $7 billion on 7/21 coming in the form of treasuries with maturities of seven to eight years. With the 7-year debt auction on Thursday 7/30 being $28 billion, the Fed gave the market a nice head start soaking a substantial supply of longer term debt and specifically treasuries in the seven year maturity range. What is also clear is that the primary dealers purchasing the securities at auction are not holding these securities long before the Fed comes to the rescue. Let's take the 7-year 3.25% coupon Treasury Notes auctioned by the Treasury on 6/25/09 as an example. $2.722 billion of this particular issue (CUSIP 912828KZ2) was purchased by the Fed on the day of issuance (6/30/09), with an additional $3.785 billion a mere three weeks later on 7/21/09. This is not atypical as there are many examples where the Fed executed large purchases of securities in close proximity to the actual auction of those securities ."
http://www.financialsense.com/fsu/ed...2009/0804.html
"Looking at more recent activity, the Fed executed purchases of treasury securities totaling $12.99 billion maturing in about seven years or more. These purchases came on 7/21, 7/23, and 7/29, with nearly $7 billion on 7/21 coming in the form of treasuries with maturities of seven to eight years. With the 7-year debt auction on Thursday 7/30 being $28 billion, the Fed gave the market a nice head start soaking a substantial supply of longer term debt and specifically treasuries in the seven year maturity range. What is also clear is that the primary dealers purchasing the securities at auction are not holding these securities long before the Fed comes to the rescue. Let's take the 7-year 3.25% coupon Treasury Notes auctioned by the Treasury on 6/25/09 as an example. $2.722 billion of this particular issue (CUSIP 912828KZ2) was purchased by the Fed on the day of issuance (6/30/09), with an additional $3.785 billion a mere three weeks later on 7/21/09. This is not atypical as there are many examples where the Fed executed large purchases of securities in close proximity to the actual auction of those securities ."
http://www.financialsense.com/fsu/ed...2009/0804.html
Comment