Resumen Capítulos 6-8
Capítulo 6: (Treasury and Agency Securities Markets)
Treasury securities are government bonds issued by the United States Department of the Treasury through the Bureau of the Public Debt. They are the debt financing instruments of the U.S. Federal government, and they are often referred to simply as Treasuries or Treasurys. There are fourtypes of marketable treasury securities: Treasury bills, Treasury notes, Treasury bonds, and Treasury Inflation Protected Securities (TIPS). There are several types of non-marketable treasury securities including State and Local Government Series (SLGS), Government Account Series debt issued to government-managed trust funds, and Savings bonds. All of the marketable Treasury securities are veryliquid and are heavily traded on the secondary market. The non-marketable securities are issued to subscribers and cannot be transferred through market sales.
There are some marketable securities issued directly by the US Government:
-Treasury bills (or T-bills) mature in one year or less. Like zero-coupon bonds, they do not pay interest prior to maturity; instead they are sold at a discount ofthe par value to create a positive yield to maturity. Many regard Treasury bills as the least risky investment available to U.S. investors. Treasury bills are quoted for purchase and sale in the secondary market on an annualized percentage yield to maturity, or basis.
-Treasury notes (or T-Notes) mature in two to ten years. They have a coupon payment every six months, and are commonly issuedwith maturities dates of 2, 5 or 10 years, for denominations from $1,000 to $1,000,000. T-Notes and T-Bonds are quoted on the secondary market at percentage of par in thirty-seconds of a point. The 10-year Treasury note has become the security most frequently quoted when discussing the performance of the U.S. government-bond market and is used to convey the market's take on longer-term macroeconomicexpectations.
-Treasury bonds (T-Bonds, or the long bond) have the longest maturity, from ten years to thirty years. They have coupon payment every six months like T-Notes, and are commonly issued with maturity of thirty years. The secondary market is highly liquid, so the yield on the most recent T-Bond offering was commonly used as a proxy for long-term interest rates in general. This rolehas largely been taken over by the 10-year note, as the size and frequency of long-term bond issues declined significantly in the 1990s and early 2000s.
-Treasury Inflation-Protected Securities (or TIPS) are the inflation-indexed bonds issued by the U.S. Treasury. These securities were first issued in 1997. The principal is adjusted to the Consumer Price Index, the commonly used measure ofinflation. The coupon rate is constant, but generates a different amount of interest when multiplied by the inflation-adjusted principal, thus protecting the holder against inflation. TIPS are currently offered in 5-year, 7-year, 10-year and 20-year maturities. 30-year TIPS are no longer offered.
The process of auctioning Treasury securities has changed substantially in the last quarter century. In1980, when-issued trading was banned, bids were submitted on paper tenders, a multiple-price format was used, results were announced hours after the close of bidding, and securities were delivered to successful bidders regardless of whether or not a bidder was actually a net buyer for settlement on the issue date. Since then, growing confidence in free markets has fostered when-issued trading,improvements in telecommunications and information processing have led to more equitable bidding and faster bid processing, and net settlement has led to cheaper and safer settlements. These adaptations have contributed, individually and collectively, to the goal of minimizing the cost of financing the national debt.
In the secondary market, securities are sold by and transferred from one...