The U.S. Treasury Department conducted its quarterly survey of primary dealers, asking them to offer views on how Treasury auction sizes should be adjusted going forward, given "structural changes in investor demand and expectations for how demand may evolve over the medium term."
The survey also asked primary dealers for their views on the impact that expanding long-dated Treasury buybacks would have on liquidity and market functioning, including: What effect has the larger buyback scale had on the capacity of market intermediaries to intermediate flows? Has client interest in participating directly or indirectly in buybacks changed after the adjustments? What additional adjustments should the Treasury consider to improve the effectiveness of the buyback program?
In addition, the survey asked primary dealers whether the Treasury should adjust its current practice of avoiding the issuance of short-term Treasury bills and floating rate notes on the same day as Federal Open Market Committee meetings.
The survey, released on Friday, will inform the Treasury's meetings with primary dealers, which will take place before the quarterly refunding plan is announced on November 4.
As usual, the survey also asked primary dealers to discuss their forecasts for the economy, fiscal and monetary policy, and U.S. Treasury financing.
Comments