Financial Implications of the Shrinking Supply of U.S. Treasury Securities

By Garry J. Schinasi, T. Todd Smith, Charles Frederick Kramer

May 1, 2001

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Format: Chicago

Garry J. Schinasi, T. Todd Smith, and Charles Frederick Kramer. Financial Implications of the Shrinking Supply of U.S. Treasury Securities, (USA: International Monetary Fund, 2001) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Recent improvements in fiscal positions in advanced countries have sharply curtailed the issuance of government securities and created the possibility that government securities could disappear in some countries. The possibility that this might occur in the United States has attracted the most attention, in large part because of the international role of the U.S. dollar and the widespread perception that U.S. treasury securities have the lowest total financial risk (the combination of credit, market, and liquidity risks) among U.S. dollar assets. This paper analyzes the unique features of government securities and links them to the important roles that government securities, in particular U.S. treasury securities, have come to play in national and international financial markets. The paper then identifies and examines financial market-oriented public policy questions raised by the shrinking supply of U.S. treasuries.

Subject: Credit risk, Financial institutions, Financial markets, Financial services, Government securities, Securities, Securities markets, Yield curve

Keywords: Financial market, Financial markets, Fixed income, Global, Global bond, Government securities, Government securities, Market participant, Public debt, Securities, Securities markets, Treasury securities, U.S. dollar, U.S. treasury securities, WP, Yield curve

Publication Details

Pages:

51
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/061
Stock No:

WPIEA0612001
ISBN:

9781451848175
ISSN:

1018-5941

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