MACROECONOMICS

Things to know about US Treasury auctions

How are US Treasury auctions conducted? How to evaluate the results of an auction?

Treasury securities (T-bond / T-bill) are debt instruments issued by the federal government to raise money for government operating activities and to pay off maturing old loans. These securities are sold to institutional and individual investors through public auctions.

The results of these auctions have a strong impact on the bond market, showing the actual market demand for bonds. So how to read and understand the results of an auction?

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