A Primer on Treasury Bonds – Part III: Primary Auctions and Private Placements
April 7, 2015
The last article, “A Primer on Treasury Bonds – Part II: Economic of Treasury Bonds Yields” Daily FT, 31 March 2015 (read here), discussed how to disaggregate Treasury bond yields into economic components such as real economic growth, inflation premium and term spread, as well as how to evaluate the appropriateness of a given yield. Recent public debate has also involved methods of selling government securities. In order to facilitate public understanding of techniques and practices of selling government securities, today’s column is devoted to a detailed discussion of primary auctions and private placements.
What type of auction method is used to sell Treasury bonds in Sri Lanka?
