Understanding Treasury Auctions
How the US government borrows money and why it matters for your portfolio.
How Bond Auctions Work
The US Treasury auctions off debt to fund government operations. Here’s what actually happens…
Types of Auctions
Competitive Bids
Large institutions bid with specific yields they’re willing to accept.
Non-Competitive Bids
Individuals agree to accept whatever yield is determined at auction.
Why It Matters
The Treasury auction determines the risk-free rate, which is the foundation for pricing every other asset.
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