Treasury
delays 3-month, 6-month bill auctions
WASHINGTON
(MarketWatch) – The weekly 3-montha and 6-month Treasury bill
auctions set for later Monday have been delayed until Tuesday,
the Treasury
Department announced. In a brief statement, the Bureau of
Public Debt said the auctions were rescheduled due to an error that
occurred during a test of the department’s auction system. The
settlement data and all other aspects of both of these auctions
remain unchanged, the statement said.
Auction
System Failure Forces US Treasury To Postpone 3, 6-Month Bill
Auctions
While nobody is impressed by breaking equity
and options markets anymore, since this has become a virtually daily
ocurrence and the habituation level is high, bond markets, and
especially the US government’s “guaranteed” bond issuance
machinery, are a different matter altogether. Which is why any time
something out of the ordinary happens, people pay attention. Such as
what happened moments ago when the US Treasury announced that it
would delay the closing of the 3 and 6 month Bill auctions,
originally scheduled to close today, to tomorrow.
The
reason: “an
error that occurred during a test of Treasury’s auction system.”
This
is curious, as it implies there was a test of the system running
concurrent with the actual bond auction. One wonders if instead of
the stated reason, there simply wasn’t yet another “glitch”
with TAAPS, which
as we reported in September, had an error due to an order by none
other than Goldman Sachs, being stuck in the quere, for reasons
unknown resulting in yet another abnormal 3 and 6 month Bill auction.
The cracks in the dam keep growing…
From
Brian Rogers
There
Will Never Be A Failed US Treasury Auction… Until There Is
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