[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-324480-105":59,"doc-detail-324480-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","auctioning-treasury-securities-economic-commentary","Auctioning Treasury Securities - Economic Commentary","","Auctioning Treasury securities explains how U.S. Treasury bills, notes, and bonds are sold through public auctions and why the current system can be vulnerable to manipulation. It describes the 1991 concerns raised after Salomon Brothers admitted unauthorized bids and outlines two sources of risk: broken auction rules that make the market unfair and potential faults in the auction process itself. The commentary then surveys the Treasury’s multiple-price, sealed-bid procedures, including tender submission, competitive versus noncompetitive awards, and trading on a when-issued basis.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/auctioning-treasury-securities-economic-commentary/324480/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/auctioning-treasury-securities-economic-commentary/324480.png","ImageObject",300,407,{"name":92,"@type":93},"Anda","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-27","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":52},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What incident raised doubts about the competitiveness of Treasury auctions?","Question",{"text":112,"@type":113},"Salomon Brothers admitted placing unauthorized bids in the names of customers during multiple auctions, including cases where it controlled far more than the Treasury-set limit.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"Why might market manipulation at a single auction harm Treasury outcomes overall?",{"text":117,"@type":113},"Even if the Treasury gains short-term funding from an artificially high price, investors may reduce participation in future auctions, lowering demand and prices across the process.",{"name":119,"@type":110,"acceptedAnswer":120},"How do Treasury auctions use sealed bids and determine awards?",{"text":121,"@type":113},"Bidders submit written sealed tenders to Federal Reserve Banks by 1:00 p.m.; noncompetitive tenders are awarded in full, while the remainder is allocated to competitive bidders based on descending price bids (or increasing yield bids).","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},324480,1790456212,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":52,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":139,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":140,"faqs":141,"seo_title":142,"seo_description":67,"update_tm":143,"read_time":144,"preview_page_count":4},962075006959,"https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297","by E.J.Stevens and Diana Dumitru  \nTe US Treasuryexecs to selabout a trillion dollars of new securitiesthis fiscal year to finance a projectedS400 billion budget deficit and torefinance maturing debt.Most of thesecurities will be issued through publicauctions,where competition among bid-ders might be expected to minimize in-terest payments on the debt.  \nThe competitiveness of Treasury auc-tions was called into question lastAugust,however,when SalomonBrothers,a large securities dealer,ad-mitted to having placed unauthorizedbids in the names of customers duringeight auctions.For example,in theMay 22,1991 note auction,the firmcontrolled more than 90 percent of theissue,far exceeding the 35 percentlimit set by the Treasury.Rumors of amarket \"squeeze\"had surfaced evenbefore the notes were issued on May  \n31.!Disappointed bidders,with con-tracts to deliver the security after it wasissued,had to pay an unexpectedly highprice for the issue in the secondarymarket,where Salomon controlledmost of the supply.  \nTwo causes for concern emerge fromthis incident.First,of course,is simplythat the market is not fair when auctionrules are broken.Some investors mightshun the Treasury securities marketrather than be exposed to losses result-ing from market manipulation.Thus,any short-term gain to the Treasuryfrom an artificially high price at asingle auction could beoutweighed bylower demand and prices in all auc-tions.Second,as suggested here,is thepossibility that the auction process  \n# Auctioning Treasury Securities\n\nitself may be at fault.Perhaps a dif-ferent system of selling new issues ofTreasury debt would reduce incentivesfor manipulation.  \nFollowing Salomon's admissions andother reported irregularities,theTreasury Department,the Board ofGovernors of the Federal Reserve Sys-tem,and the Securities and ExchangeCommission conducted a study in 1991leading to a joint report on the govem-ment securities market.The report re-affirms that public auctions are the bestmeans of issuing new Treasury debtand recommends some minor adjust-ments that have already been adoptedto ensure public access to the existingauction process.It also recommends amore thorough exploration of altema-tive methods of conducting public auc-tions.This Economic Commentary ex-amines the rationales for adopting adifferent system for determining theprice paid by a winning bidder and anew technology for bidding.²Both ofthese changes could make public auc-tions of Treasury securities less suscep-  \ntible to manipulation.  \n## ■ Today's Auctions:Multiple-Price,Sealed-Bid\n\nThe Treasury maintains a regularschedule of auctions in which itsellsbonds,notes,and bills.Bonds and notesare sold in $1,000 denominations andpay interest every six months untilmaturity,which ranges from 10 to 30years for bonds and from one to 10years for notes.The recent schedulehas included monthly auctions of two-and five-year notes and quarterly  \nJune 15.1992  \nThe current method of auctioningTreasury securities contains both in-centives and opportunities for marketmanipulation.Two suggested changesin the auctions might eliminate theseproblems and thus reduce the need topolice arbitrary auction rules.  \nauctions of three-,seven-,and 10-year  \nnotes and 30-year bonds.  \nTreasury bills,in S10,000 denomina-tions,have no coupon.An investor'sreturn comes from the difference be-tween the maturity value and the pricepaid—the \"discount.\"Bills maturingin 13 weeks and 26 weeks are auctionedevery Monday.Bills maturing in 52weeks are offered every four weeks.  \nAbout a week before each auction,theTreasury announces the auction day,size,maturity,and the settlement daywhen successful bidders must makepayment.From this announcementuntil settlement,the impending securityactually trades in the market on a\"when-issued\"basis,with the promiseof delivery on settlement day.When-issued trading thus may provide poten-tial bidders with information about thelikely price in the auction.  \nBy 1:00 p.m.on auction day,biddersmust submi","cbCaiuFx61sTO8J8","https://ap.wps.com/l/cbCaiuFx61sTO8J8","pdf",1187452,"English","# Today's Auctions: Multiple-Price, Sealed-Bid\n## The Winner's Curse","[{\"question\":\"What incident raised doubts about the competitiveness of Treasury auctions?\",\"answer\":\"Salomon Brothers admitted placing unauthorized bids in the names of customers during multiple auctions, including cases where it controlled far more than the Treasury-set limit.\"},{\"question\":\"Why might market manipulation at a single auction harm Treasury outcomes overall?\",\"answer\":\"Even if the Treasury gains short-term funding from an artificially high price, investors may reduce participation in future auctions, lowering demand and prices across the process.\"},{\"question\":\"How do Treasury auctions use sealed bids and determine awards?\",\"answer\":\"Bidders submit written sealed tenders to Federal Reserve Banks by 1:00 p.m.; noncompetitive tenders are awarded in full, while the remainder is allocated to competitive bidders based on descending price bids (or increasing yield bids).\"}]","Auctioning Treasury Securities - Economic Commentary | PDF",1789968039,13]