What is the auction of the Ministry of Finance?
Auction of the Ministry of Finance is a public auction organized by the Ministry of Finance of the United States. These auctions help reduce state debt financing costs by offering competitive offers in the "without risk" environment. The US Ministry of Finance receives funds through a federal reserve bank in New York (FRBNY) through the Dutch auction - auction where the required price starts high and is slowly reduced until the buyer is. FRBNY and brokers perform each cash register auction using the automated system of processing room (TRAPS), where offers are settled in minutes. Each safety has different maturity. Each auction of the cash desk annually There are 200 treasury auctions that increase approximately $ 4.2 trillion trillion trillion dollars. The auction is first announced through the main newspapers and printing sessions. The offers were then accepted and the securities are then issued to the highest bidder. One can also get to the list of e-mail e-mails from PPublic debt dads on the website of Bureau of the public debt. In addition, the Ministry of Finance publishes a multi -month calendar that contains preliminary auctions. This calendar is published on the first Wednesday of February, May, August and November.
In the announcement, one learns: the value of securities sold by the Ministry of Finance; Auction date; date of maturity; conditions; Customers; Offer of close times; and other useful information.
As soon as the offer time is open, financial institutions and individual investors can submit their offers. This is usually a detection through a bank, broker or through TreasuryDirect - a government website for buying securities at the cash register auctions.
One can subscribe to the list of e-mails and learn the results of the auction or viewing the results on the public debt website. Available results from previoush auction dates back to 1980.
As of the auction release date, securities are delivered to the winning candidates. The winners can then stick to this security until matured or sell before security injury.
There are a number of rules that control the auction of the cash register that lays down the contractual conditions, sets investment limits, requires proper reports and more. They also explain the definitions and calculations that move into transactions. These can be found in detail on the TreasuryDirect website.