The Flight-to-Liquidity Premium in U.S. Treasury Bond Prices

We examine whether there is a flight-to-liquidity premium in Treasury bond prices by comparing them with prices of bonds issued by Refcorp, a U.S. Government agency, which are guaranteed by the Treasury. We find a large liquidity premium in Treasury bonds, which can be more than fifteen percent of the value of some Treasury bonds. This liquidity premium is related to changes in consumer confidence, the amount of Treasury debt available to investors, and flows into equity and money market mutual funds. This suggests that the popularity of Treasury bonds directly a.ects their value.

Treasurer's Annual Report, June 30, 2003

In accordance with Iowa law, this report submitted to the State Treasury. This report discloses all cash receipts and disbursements for fiscal year and the final balance held in the treasury. In addition, you will find descriptions of various treasury activities. This information is a welcomed the opportunity to share this with you and hope it will help you understand the treasurer’s role in state government

Who buys Treasury securities at auction?

The U.S. Treasury Department now releases fuller information about its auctions than in the past, including new information on investor class and bidder category. The investor class data shed light on the distribution of demand for government securities, and the bidder category data, released first, offer an early read on demand. Purchases by indirect bidders, in particular, are a fairly good proxy for foreign purchases of Treasury notes, but not Treasury bills.Auctions ; Treasury notes ; Treasury bills ; Government securities

Liquidity effects in the bond market

The authors find that supply risk in the market for Treasury bills adds between 10 basis points and 40 basis points to the standard deviation of the T-bill interest rate. The risk will probably increase unless the Fed expands the set of assets that it uses to conduct open market operations.Liquidity (Economics) ; Treasury bonds ; Treasury bills ; Treasury notes

The Treasury securities market: overview and recent development

The market for U.S. Treasury securities is by many measures the largest, most active debt market in the world, and the securities play a pivotal role in world financial markets. The market has evolved over time in keeping with the changing needs of both the Treasury and investors. After describing the market's structure and examining the factors driving the demand for Treasury securities in some detail, this article discusses recent developments, including the introduction of inflation-indexed securities and a decline in the issuance of Treasury securities.Treasury bills ; Treasury notes ; Government securities

Debt-management policy and the own price elasticity of demand for U.S. government notes and bonds

Treasury bonds ; Treasury notes

The emergence of "regular and predictable" as a Treasury debt management strategy

During the 1970s, U.S. Treasury officials revised the framework within which they selected the maturities of new notes and bonds. Previously, they chose maturities on an offering-by-offering basis. By 1982, the Treasury had ceased these "tactical" sales and was selling notes and bonds on a "regular and predictable" schedule. This article describes that key change in the Treasury's debt management strategy. The author shows that in 1975, Treasury officials financed an unusually rapid expansion of the federal deficit with a flurry of tactical offerings. Because the timing and maturities of the offerings followed no predictable pattern, the sales sometimes took investors by surprise, disrupting the market. These events led Treasury officials to embrace a more regularized program of regular and predictable issuance - a program they had been using for decades to auction bills. The Treasury's switch to regular and predictable issuance of notes and bonds was widely praised for reducing the element of surprise in Treasury offering announcements, facilitating investor planning, and decreasing Treasury borrowing costs.Treasury notes ; Treasury bonds ; Deficit financing ; Auctions

Human Capital and the Inclusive Economy

This paper draws on recent empirical evidence to look at how human capital policies in New Zealand can achieve "Inclusive Economy" objectives. In particular it looks at evidence on policies that are best to promote growth, and to improve the distribution of well-being; whether they are the same, and the extent to which they involve trade-offs. Compared to other OECD countries, New Zealand appears to have relatively high rates of participation in tertiary education, and at least average performance on measures of achievement amongst school students. Nevertheless, in common with other English speaking countries, it tends to have a relatively wide dispersion of skills both amongst school students and in the working age population. There is some suggestion that New Zealand is not making as much progress as other countries (Australia in particular) in raising skills among the less able, in new generations of school leavers. Taken over all, the paper suggests a two-pronged strategy. Firstly, policies should aim to increase the incidence of world-class tertiary education and research relevant to industry. Given already high levels of public and private investment in tertiary education, this should involve redesign of institutional and funding arrangements, rather than large amounts of extra public resources. Secondly, policies should aim to raise the skills of the less able entering the workforce. Interventions in early childhood and primary schooling are likely to be most effective in the long term - though, given the current large stock of low skilled adults, a continuing search for effective working-age interventions to address this will also be worthwhile.Human capital, education, economic growth, distribution of earnings

Recent innovations in Treasury cash management

The Treasury Tax and Loan program, a joint undertaking of the Treasury and the Federal Reserve, is designed to manage federal tax receipts and stabilize the supply of reserves in the banking system. Three recent innovations-electronic collection of business taxes, real-time investment of excess Treasury balances, and competitive bidding for Treasury deposits-have materially enhanced the ability of the two agencies to achieve these objectives.Taxation ; Tax and loan account ; Federal Reserve System

Treasury cash flows in the enterprise

Treasury allows to appreciate the enterprise's performance, having also a strategic role in terms of its training level and usage manners. Release (training) of treasury (cash-flow) is the proof of the strategic position of enterprise in relation to its products, its markets, its competitors and external constraints. This strategic satisfactory position generates significant financial flows that allow the company to procure foreign capital, particularly on the financial market, or placing the treasury surplus.cash, payments, claims, investment, financing, treasury